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    Exam 3: What Do Interest Rates Mean and What Is Their Role in Valuation?
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    What Is the Return on a 5 Percent Coupon Bond
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What Is the Return on a 5 Percent Coupon Bond

Question 20

Question 20

Multiple Choice

What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $900 one year later?


A) 5 percent
B) 10 percent
C) -5 percent
D) -10 percent
E) None of the above

Correct Answer:

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