Homework Help: Economics

Posted by Sarah on Sunday, April 29, 2012 at 8:42pm.

You bought the bond for $1,040, after 6 months you received a coupon of $35 and after another 6 months you received another $35 coupon and you sold the bond for $1,070. What would be your total dollar return in that case? What would be your total percentage return?

Would the total dollar return be $100 [(1070 – 1040)+35+35]?

Would the total percentage return be 9.62% [[(1070 – 1040)+35+35]/1040]?

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