Suppose you purchase a bond with a coupon of $50 for $1010. You sell it one year later for $900. What rate of return did you earn? Report a percentage with two decimal places
What will be an ideal response?
The rate of return is $50/$1010 + ($900 - $1010)/$1010 = -5.94%.
You might also like to view...
Historians generally agree that the railroads
(a) were absolutely essential for industrial growth in the 19th century. (b) were an indispensable "leading sector." (c) were our first "giant" enterprises. (d) provided a "social saving" of 90% or more.
The price elasticity of demand is -1.5. The price elasticity of supply is 1.5. The fraction of a specific tax that is borne by producers is ________
A) 0 B) 0.25 C) 0.5 D) 0.75 E) 1
Why is deflation such a problem for consumption and investment?
A. It increases the rate of both. B. It slows both. C. It slows investment while simultaneously increases consumption. D. It causes firms and households to spend more.
The longer the time period considered, the price elasticity of demand tends to: a. decrease
b. remain constant. c. increase. d. converge to zero.