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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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