What return has the bondholder earned


Problem:

A six-year US government bond (i.e. face value is $1,000) makes annual coupon payments of 5% and offers a yield of 3% annually compounded. Suppose that one year later the bond still yields 3%.

Requirement:

Question: What return has the bondholder earned over the 12-month period?

Note: Explain in detail and show all computations in proper way.

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Accounting Basics: What return has the bondholder earned
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