Answer:
the total return is 6.82%
Explanation:
The computation of the total return is shown below:
Total Return = (Interest + (Selling Price - Issue Price)) ÷ Issue Price
where,
Interest = Face value × Coupon rate
= $1,000 × 9%
= $90
Now
Total Return is
= ($90 + ($1,085 - $1,100)) ÷ $1,100
= ($90 - $15) ÷ $1,100
= $75 ÷ $1,100
= 0.0682
= 6.82%
Hence, the total return is 6.82%
