A buy-and-hold investor purchases a fi xed-rate bond at a discount and holds the security until it

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A “buy-and-hold” investor purchases a fi xed-rate bond at a discount and holds the security until it matures. Which of the following sources of return is least likely to contribute to the investor’s total return over the investment horizon, assuming all payments are made as scheduled?

A . Capital gain B . Principal payment C . Reinvestment of coupon payments

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Fixed Income Analysis

ISBN: 9788126563128

3rd Edition

Authors: Barbara S. Petitt, Jerald E. Pinto, Wendy L. Pirie, Bob Kopprasch

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