Financial Mathematics 4.1: Bonds

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Thanks for the video, but going over some actual numbers would be more helpful.

If I have a customer that sells an 8% bond for 102, which they purchased at par 1 year ago, what is the total return of this postion.

The answer that is given to this question is 10%.

The formula for this question: ($80+$20) / 1000 = 100 / 1000 = 0.10 (10%)

I have no idea where these numbers come from and your video doesn't make it any more clear. I was hoping this video was going to explain the financial mathematics behind bonds, but I literally know (now I know I don't know) less than before with seeing that formula from your video.

mr.nobody