An investor buys a bond. At the end of the first year, the bond is worth $1,300. During the year, the investment paid $20 in interest and had a capital gain of $250. What is the Total Return

25.71%

Explanation:

An investor makes a bond purchase

At the end of the first year The bond is worth $1,300

The investment paid $20 in interest

The capital gain is $250

The first step is to calculate the cost of security

= $1,300-$250

= $1,050

Therefore, the total return can be calculated as follows

Total return= capital gain+income/cost of security

= $20 + $250/$1,050

= $270/$1,050

= 0.2571×100

= 25.71%

Hence the total return is 25.71%

being born in poverty would limit the people's chances, opportunities and benefits.

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- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.