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

  • The total return from owning a coupon-paying bond has two parts--the coupon part and the capital gain or loss part. Explain how its 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.

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