Personal Finance 1st Edition by Jack R. Kapoor

Exercise 20

Calculating Total Return. Jean Miller purchased a $1,000 corporate bond for $910. The bond paid 5 percent annual interest. Three years later, she sold the bond for $1,010. Calculate the total return for Ms. Miller’s bond investment. (Obj. 3)

Step 1 of 2

Total return includes total interests, capital gains, dividend distributions etc. It can be calculated by using the following formula: