WHAT IS THE RATE OF RETURN FOR AN INVESTOR WHO PAYS $1,054.47 FOR...
14. What is the rate of return for an investor who pays $1,054.47 for a three-year
bond with a 7 percent coupon and sells the bond one year later for $1,037.19?
Assume the investor can reinvest the coupons at a 9% APR with semi-annual
compounding. The bond pays coupons semi-annually and has a face value of
$1,000.
A) 5.00 percent
B) 5.15 percent
C) 5.30 percent
D) 8.43 percent