An investor buys a bond for $10,000. The bond pays $300 interest every 6 months. After 18 months, the investor sells the bond for $9,500. Describe the types of income and/or loss the investor had?

Purchase of a bond is an investment. Interest paid every six months is known as a coupon payment.

Profit or loss = (Income from sale + coupons) - original price

In 18 months, the investor would receive income from the sale of the bond ($9,500) in addition to the three-six month coupons payments amounting to = $300 * 3 = $900

Profit or loss = ($9,500 + $900) - $10,000

Profit or loss = $10,400 - $10,000

Profit = $400