The following table gives annual, end of year prices of a bond and of the consumer prices
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The following table gives annual, end of year prices of a bond and of the consumer prices index Year Bond valueCPI value 2011 36.9 108.0 2012 39.8 110.3 2013 42.4 113.6 2014 38.1 116.1 2015 36.4 118.4 2016 39.2 120.9 2017 44.6 123.2 2018 45.1 125.4
(a) Calculate the simple returns
(b) Calculate the continuously compounded returns
(c) Calculate the prices of the bond each year in 2018 terms
(d) Calculate the real returns
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