Answer:
Total dollar return is $103.00
Explanation:
The total dollar return on the investment comprises of the increase in price as well as the annual coupon of 7.4% of face value received over the holding period of one year.
annual coupon=face value*coupon rate=$1000*7.4%=$74.00
increase in bond's price=$926-$897=$29.00
Total dollar return on investment=$74.00+$29.00
Total dollar return on investment=$103
