1. Which of the following statements about the holding period return on a coupon bond is correct?
A) The total rate of return may never be negative.
B) The total rate of return may be greater or less than the rate of capital gain.
C) The total rate of return may be greater or less than the current yield.
D) The total rate of return is greater than the coupon, holding everything else constant.
2. Would you be interested in investing in stocks and bonds despite the uncertainty?