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kondaur [170]
3 years ago
13

Suppose you bought a bond with an annual coupon rate of 7.5 percent one year ago for $898. The bond sells for $928 today. a. Ass

uming a $1,000 face value, what was your total dollar return on this investment over the past year
Business
1 answer:
Rufina [12.5K]3 years ago
6 0

Answer: $105

Explanation:

The dollar return would be the sum of the returns (coupon) from the bond and any capital appreciation.

Coupon payment = Coupon rate * Face value

= 7.5% * 1,000

= $75

Capital appreciation = 928 - 898

= $30

Total dollar return = 75 + 30

= $105

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Answer: Yes they will.

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