103 11/32 = 103.344% or $1,033.44
101 13/32 = 101.406% or $1,014.06
A coupon of 10 3/8 = 10.375% or $103.75
The rate of return equals the [(ending cash flows − the beginning cash flows) / beginning price] × 100 =
[(1014.06 + 103.75 − 1033.44) / 1033.44] × 100 = 8.16%
