Which of the following factors is used to calculate the total return on the sale of a bond?
A)commission when bond was purchased
B)interest earned on the bond
C)cost of the bond when purchased
D)dollar return when the bond was sold
E)All of these

Question

Quizplus · Accepted Answer

To calculate the total return on the sale of a bond, you need to consider all of the following factors:
A. Commission when the bond was purchased: This is the fee paid to the broker or financial institution for facilitating the purchase of the bond. It is part of the initial investment cost and affects the overall return.
B. Interest earned on the bond: This is the income received from the bond in the form of coupon payments. It is a key component of the bond's total return.
C. Cost of the bond when purchased: This is the initial investment amount paid for the bond. It is necessary to know this to determine the capital gain or loss upon sale.
D. Dollar return when the bond was sold: This is the amount received from selling the bond, minus any fees or commissions associated with the sale. It reflects the capital gain or loss on the investment.
All of these factors combined (A, B, C, and D) give you the total return on the bond investment. The total return includes interest income, capital gains or losses, and the effects of any fees or commissions paid.

Which of the Following Factors Is Used to Calculate the Total