4. 4. Calculating returns [LO 12.1] Suppose you bought a bond with an annual coupon of 7...

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4. 4.

Calculating returns [LO 12.1] Suppose you bought a bond with an annual coupon of 7 per cent one year ago for $1010. The bond sells for

$985 today.

1. Assuming a $1000 face value, what was your total dollar return on this investment over the past year?

2. What was your total nominal rate of return on this investment over the past year?

3. If the inflation rate last year was 3 per cent, what was your total real rate of return on this investment?

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Fundamentals Of Corporate Finance

ISBN: 9781743768051

8th Edition

Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan

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Question Posted: Oct 03, 2024 05:00 AM

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4. 4. Calculating returns [LO 12.1] Suppose you bought a bond with an annual coupon of 7...

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Fundamentals Of Corporate Finance

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