3.

A What was the real rate of return over the past year (from one year ago to today) for a stock if the inflation rate over the past year was 4.57 percent, the risk-free return over the past year was 6.99 percent, the stock is currently priced at 78.89 dollars, the stock was priced at 71.24 dollars 1 year ago, and the stock just paid a dividend of 2.47 dollars? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

B. Over the past year (from one year ago to today), the inflation rate was 4.13%, the risk-free rate was 6.08%, and the real rate of return for a bond was 3.17%. The bond is currently priced at $974.00, pays annual coupons of $84.70, and just made a coupon payment. What was the price of the bond one year ago

C Over the past year (from 1 year ago to today), the inflation rate was 6.09 percent, the risk-free rate was 8.98 percent, and the real rate of return for a bond was 8.62 percent. The bond was priced at 1,288.18 dollars one year ago and 1,316.75 dollars two years ago, pays annual coupons of 55.58 dollars, and just made a coupon payment. What is the price of the bond today?