A ten-year, zero-coupon bond with a yield to maturity of 4% has a face value of $1000. An investor purchases the bond when it is initially traded, and then sells it four years later
What is the rate of return of this investment, assuming the yield to maturity does not change?
A) 3.20%
B) 2.40%
C) 4.00%
D) 2.00%
Answer: C
You might also like to view...
A petitioner must file a petition for certiorari, asking the Supreme Court to hear the case.
Answer the following statement true (T) or false (F)
Revenues always increase equity.
Answer the following statement true (T) or false (F)
Which of the following statements was not made in ARB 43?
a. Income taxes are an expense that should be allocated as other expenses are allocated. b. Income taxes should be allocated to income and other accounts as other expenses are allocated. c. The income statement should reflect tax expense properly allocable to the income included in the income statement for the year. d. Tax expense should equal the amount of tax payable based on taxable income for the year.
Which leader behavior is the defining characteristic of Liden’s servant leadership model?
A. behaving ethically B. emotional healing C. putting followers first D. empowering