Suppose you bought a 7 percent coupon bond one year ago for $1,040. The bond sells for $1,070 today.

Required:

(a)

Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?

Question:
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Suppose you bought a 7 percent coupon bond one...

Suppose you bought a 7 percent coupon bond one year ago for $1,040. The bond sells for $1,070 today.

Required:

(a)

Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?

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