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1. Suppose you bought a bond with an annual coupon of 12% one year ago for $1,050. The bond sells for $820 today. a.
1. Suppose you bought a bond with an annual coupon of 12% one year ago for $1,050. The bond sells for $820 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%, what was your total real rate of return on this investment? (75 POINTS)
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To calculate the total dollar return on the investment we need to consider the coupon payments recei...
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
