. January 1, 2002 you bought a coupon bond for $1102. You received a coupon of $50 on December 30 . On January 1, 2003, you sold the bond for $989. What was your total rate of return? Show your work.

The rate of return is found to be -5.72%. The negative sign indicate that the bond resulted in a loss.

Explanation:

The total rate of return r is given as

Here the value of the net return or loss  is given as

So the rate of return is as

As  the rate of return is found to be 5.72%. The negative sign indicate that the bond resulted in a loss.

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