The rate of return is equal to
A) the coupon rate plus the rate of capital gains.
B) the coupon rate plus the current yield.
C) the current yield plus the rate of capital gains.
D) the coupon rate multiplied by the rate of capital gains.
C
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If the real interest rate increases from 3 percent to 5 percent
A) the nominal interest rate will also increase. B) the demand for loanable funds curve will shift rightward. C) there will be a movement up along the demand for loanable funds curve. D) the supply of loanable funds curve will shift rightward.
Suppose there are two countries that are identical in every way with the following exception: Country A has a higher saving rate than country B. Given this information, we know with certainty that
A) the growth rate will be higher in A than in B. B) the growth rate will be the same in the two countries. C) the level of consumption per worker will be higher in A. D) the level of consumption per worker will be higher in B.