Author Question: An investment's total return is the sum of any cash distributions minus the change in the ... (Read 205 times)

ENagel · **on:** Jul 11, 2018

An investment's total return is the sum of any cash distributions minus the change in the investment's value, divided by the beginning-of-period value.

Indicate whether the statement is true or false

Question 2

A firm has an issue of 1,000 par value bonds with a 9 percent stated interest rate outstanding. The issue pays interest annually and has 20 years remaining to its maturity date.

If bonds of similar risk are currently earning 11 percent, the firm's bond will sell for ________ today.
A) 1,000
B) 716.67
C) 840.73
D) 1,123.33