Bond's expected return

[MrSmart]

I don’t understand the following extract from the book. This is for a 3 year annual bond paying 8% coupon rate at a current market price of 100.
Do we not discount the first coupon by 1.09, second by 1.09^2? Why is the first $8 left undiscounted? Does this not assume that the trader buys the bond at the current market price and recieves 3 annual coupons in the future at a new rate of 9%?
Halp.

 

[breadmaker]

I think this is a holding period return, where the holding period ends on the first coupon date.

 

[MrSmart]

breadmaker wrote:
I think this is a holding period return, where the holding period ends on the first coupon date.

Ah, makes sense.
Thanks.