What is rawlings total return on the bond

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Reference no: EM131329134

David Rawlings pays $1,000 to buy a 5-year Treasury bond that pays a 6 percent coupon rate (for simplicity, assume annual coupon payments).

One year later, the market's required return on this bond has increased from 6 percent to 7 percent. What is Rawlings total return (in dollar and percentage terms) on the bond?

Reference no: EM131329134

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