Calculating Returns Suppose you bought a 6 percent coupon bond one year ago for $1,040. The bond

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Calculating Returns Suppose you bought a 6 percent coupon bond one year ago for $1,040. The bond sells for $1,063 today.

a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?

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

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

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Corporate Finance With Connect Access Card

ISBN: 978-1259672484

10th Edition

Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe

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Question Posted: Jul 09, 2024 09:02 AM

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Calculating Returns Suppose you bought a 6 percent coupon bond one year ago for $1,040. The bond

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Corporate Finance With Connect Access Card

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