Kim Back Invested $20,000 One Year in Corporate Bonds

Multiple Choice

Kim Back invested $20,000 one year in corporate bonds. Each bond sold for $1,000 and earned a coupon payment of $80 each during the year. The price of the bond at the end of the year dropped to $980. Which of the following is Kim's total dollar gain or loss on her investment?

A) $1,600
B) −$400
C) $1,200
D) $1,000