The current price of a government bond is $920. The bond pays $90 in interest this year. At the end of the current year, the bond matures, and the principal of $1,000 is repaid. What is the return to the holder of this bond?

A) 1 percent
B) 8 percent
C) 9 percent
D) 17 percent

D

Economics

You might also like to view...

As opposed to GDP, GNP tries to measure

A) the happiness of a nation. B) the value of all intermediate goods produced in a nation. C) the economic performance of a nation's citizens regardless of where they happen to be producing. D) the economic performance of a country's economy regardless of the nationality of the producers.

Economics

Two projects have the following NPVs and standard deviations:

Project A Project B NPV 200 300 Standard deviation 75 100 Which of the two projects is more risky?

Economics