David rawlings pays 1000 to buy a 5-year treasury bond that, Ask an Expert

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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?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92083720

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