At the end of the year a 15 coupon Brazilian bond priced at

At the end of the year, a 15% coupon Brazilian bond priced at its face value (R1,000) sold for R950. If the real appreciated from $0.75/R to $0.85/R, then what was the bond’s total dollar return during the period?

Cost of the bond in $ = 1000*0.75 = $ 750.00 Total receipt in $ after 1 year = (150+950)*0.85 = $ 935.00 Total dollar return = 935 - 750 = $ 185.00 % return = 185/750 = 24.67%