SIE Exam Practice Question 332

Question: 332

When calculating total return on a bond,

A. interest earned is subtracted from any capital gain, and this result is then divided by the initial purchase price.

B. interest earned is subtracted from the redemption value of the bond.

C. interest earned is added to any capital gain, and this result is then divided by the initial purchase price.

D. interest earned is divided by the redemption value of the bond.