Question: Chapter 6 The total return from owning a coupon- paying bond has two parts--the coupon part and the capital gain or loss part. Explain how

Chapter 6 The total return from owning a coupon- paying bond

Chapter 6 The total return from owning a coupon- paying bond has two parts--the coupon part and the capital gain or loss part. Explain how it's possible for the total return on a bond to be either greater than or less than the coupon part of the total return. Illustrate with a numerical example. Using the CAPM formula, make up numbers for the risk-free rate, beta and the MRP. Describe 3 ways to determine the expected return on the market from the numbers that you used. Chapter 8

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