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True or False: With a discount bond, the return on the bond is equal to the rate of capitalgain.

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True or False: With a discount bond, the return on the bond is equal to the rate of capitalgain.
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Solution 1

False. The return on a discount bond is not only equal to the rate of capital gain. It also includes the interest earned over the life of the bond. The total return on a bond is the sum of the interest payments received and any capital gain (or loss) realized upon the sale or maturity of the bond. T Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.

Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI  is a powerful AI-powered study tool designed to help you to solve study problem.
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