单选题 What rate of return will an investor earn if they buy a 20-year, 10 percent annual coupon bond for $900? They plan on selling this bond at the end of five years for $951. ? Calculate the rate of return and the current yield at the end of five years. Rate of return Current yield ①A. 12.0% 10.51% ②B. 9.4% 11.00% ③C. 12.0% 11.00%

A、

A. ①
B、

B. ②
C、

C. ③

【正确答案】 A

【答案解析】Realized (horizon) yield=rate of return based on reinvestment rate on selling price at the end of the holding period horizon. PV=900; FV=951; n=5; PMT=100; CPF I=12 percent Current Yield=annual coupon payment/bond price CY=100/$951=0.1051 or 10.51 percent