Dollar Returns Total dollar return income from investment capital gain (loss)due to change in price Example: You bought a bond for $950 one year ago.You have received two coupons of $30 each.You can sell the bond for $975 today.What is your total dollar return? ■Income=$30+$30=$60 Capital gain $975-$950 $25 Total dollar return $60 $25 $854 Dollar Returns n Total dollar return = income from investment + capital gain (loss) due to change in price n Example: q You bought a bond for $950 one year ago. You have received two coupons of $30 each. You can sell the bond for $975 today. What is your total dollar return? n Income = $30 + $30 = $60 n Capital gain = $975 – $950 = $25 n Total dollar return = $60 + $25 = $85