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1. Suppose that an investor bought a bond last year for $980. The bond pays a 7% annual coupon and has a par value of

1. Suppose that an investor bought a bond last year for $980. The bond pays a 7% annual coupon and has a par value of $1,000. Today, the same bond is selling for $960. If the investor sells the bond this morning, what is the total dollar return on this investment?

A. -$40

B. $30

C. $50

D. $70

E. $40

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