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Suppose you bought a 8 percent coupon bond one year ago for $1,070. The bond sells for $1,135 today. Requirement 1:Assuming a $1,000 face value, what was your total dollar return on this investment over the past year

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Answer from: champions2k19

The total dollar return on this investment over the past year is $145.

Explanation:

The total return will be the sum of the interest income received from the bond and any price apppreciation received after one year period.

First we need to determine the interest income

Interest income = Face value of the bond x Coupon rate

where

Face value = $1,000

Coupon rate = 8%

Interest income = $1,000 x 8%

Interest income = $80

Now calculate the price appreciation

Price appreciation = Present value of the bond - Purchase value of the bond

Where

Present value of the bond = $1,135

Purchase value of the bond = $1,070

Placing values in the formula

Price appreciation = $1,135 - $1,070

Price appreciation = $65

Now calculate the total return

Total return = Interest income + Price appreication

Total return = $80 + $65

Total return = $145

Answer from: Quest

In line with other previous and contemporaneous proposals, in 1912 the meteorologist alfred wegener amply described what he called continental drift, expanded in his 1915 book the origin of continents and oceans and the scientific debate started that would end up fifty years later in the theory of plate tectonics.

Answer from: Quest

the answer is "b.the increased supply will create a surplus. "

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Suppose you bought a 8 percent coupon bond one year ago for $1,070. The bond sells for $1,135 today....

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