This question should be answered by hand. Show all your calculations. Suppose you purchase a coupon bond with $20$ years to maturity for $$1000.$ It pays coupons of $$70$ a year.

Suppose after $1$ year, you must sell the bond to pay for tuition. Further suppose that the interest rate has risen and the price of the bond has fallen to $$950.$ What is the size of the capital gain or loss?

What is the rate of return that you earned for holding the bond for $1$ year?

Is it possible to make a negative return on a long$-$term US bond if the holding period is less than maturity?