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4 . Calculating Returns Suppose you bought a 7 . 0 0 % coupon bond one year ago for $ 8 9 3 . The
Calculating Returns
Suppose you bought a coupon bond one year ago for $ The bond sells for $ today. Assuming a $ face value
a 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 what was your total real rate of return?
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