What is the rate of return for an investor who pays $1,054.47 for a 3-year bond with coupon of 6.5% and sells the bond 1 year later for $1,037.19?
A) 4.53%
B) 5.33%
C) 5.16%
D)4.92%

Name: What is the rate of return for an investor who pays $1,054.47 for a 3-year bond with coupon of 6.5% and sells the bond 1 year later for $1,037.19? A) 4.53% B) 5.33% C) 5.16% D)4.92%
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Quizplus · Accepted Answer

Rate of return = [$1,037.19 + (.065 × $1,000) - $1,054.47]/$1,054.47 = .0453, or 4.53%

What Is the Rate of Return for an Investor Who