Question

Suppose you purchase a 5-year bond with a coupon payment of $40 for $800. One year later, you sell it for $1,000. The rate of return on your bond for a holding period of one year is

Select one:

O A 30%

OB. 15%

OC 25%

OD: 20%

Answer 1

Answer:

oc 25%

Explanation:

because its oc 25%

Answer 2

Answer:

25% is the rate of return on bond for a holding period of one year.