The return on a 5 percent coupon bond that initially sells for $1,000 and sells for $950 next year is
A) -10 percent.
B) -5 percent.
C) 0 percent.
D) 5 percent.
Answer: C
The return on a 5 percent coupon bond that initially sells for $1,000 and sells for $950 next year is
A) -10 percent.
B) -5 percent.
C) 0 percent.
D) 5 percent.
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