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4. The following table gives annual, end of year prices of a bond and of the consumer prices index YearBond valueCPI value 200636.9108.0 200739.8110.3 200842.4113.6
4. The following table gives annual, end of year prices of a bond and of the consumer prices index
YearBond valueCPI value
200636.9108.0
200739.8110.3
200842.4113.6
200938.1116.1
201036.4118.4
201139.2120.9
201244.6123.2
201345.1125.4
(a) Calculate the simple returns
(b) Calculate the continuously compounded returns
(c) Calculate the prices of the bond each year in 2013 terms
(d) Calculate the real returns
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