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Risk and Return: Bond income, capital gain, and return

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John Haven purchased a bond for $9,500. The bond pays $300 interest every six months. If John decides to sell the bond after 18 months for $10,000 what would be his:

1. Income?
2. Capital Gain or Loss?
3. Total return in dollars and as a percentage of the original investment?

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Solution Summary

The following concepts are covered in the solution: bonds, investment, risk and return, bond return, bond income, capital gain, capital loss, bond return in dollars, and bond return in percentage

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INVESTMENTS - RISK AND RETURN
BOND INCOME, CAPITAL GAIN OR LOSS, TOTAL RETURN
John Haven purchased a bond for $9,500. The bond pays $300 interest every six months. If John decides ...

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