Answer:
Jenny
Realized return = $205
Explanation:
a) Data and Calculations:
Cost of bond = $985
Coupon interest = $90
Sale of bond = $1,100
Realized return = Proceeds from sale of bond plus Received coupon interest minus the Cost of the bond
= $1,100 + $90 - $985
= $205
b) The Realized Return is the actual return which Jenny earned during the holding period for her investment. It may include dividends, interest payments, and other cash distributions. The term "realized return" can be specifically be applied to a bond sold before its maturity date or a dividend-paying security.
