- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 10. Interest Rate Risk and Return
- Subject 1. Sources of Return
CFA Practice Question
The total dollar return is comprised of what components?
B. capital gain/loss, coupon payments, and principal repayment
C. coupon payments, capital gain/loss, and reinvestment income
A. principal repayment, capital gain/loss, and reinvestment income
B. capital gain/loss, coupon payments, and principal repayment
C. coupon payments, capital gain/loss, and reinvestment income
Correct Answer: C
User Contributed Comments 6
| User | Comment |
|---|---|
| Abde | The Total Dollar return for the current bond in issuance. |
| myanmar | what's about the principal? |
| tao001jp | Principle is principle, not aprt of return. |
| fahad | consist of all sources of income |
| achu | INCLUDES Reinvestment income! |
| mrushdi | cash Flows from investment= Coupon + Principal Compared to; Return from Investment=Coupon+Capital Gain/Loss+Reinvestment Income. |