Suppose you bought a bond with an annual coupon of 6 percent one year ago for $1,010.

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Suppose you bought a bond with an annual coupon of 6 percent one year ago for $1,010. The bond sells for $1,025 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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Fundamentals Of Corporate Finance

ISBN: 9781265553609

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Aug 24, 2021 05:42 AM

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Suppose you bought a bond with an annual coupon of 6 percent one year ago for $1,010.

Question:

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Fundamentals Of Corporate Finance

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