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HOMEINSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW 11A A Calibri ,AAlignment Number Conditional Format as C Cells Editing Paste B 1 uB- Clipboard A1 Formatting
HOMEINSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW 11A A Calibri ,AAlignment Number Conditional Format as C Cells Editing Paste B 1 uB- Clipboard A1 Formatting Table Styles St Font You bought one of Great White Shark Repellant Co.'s 6.5 percent coupon bonds one year ago for $1,090. These bonds make annual payments and mature 14 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 5.2 percent. If the inflation rate was 3.9 percent over the past year, what was your total real return on investment? Coupon rate Purchase price Par value (% of par) Par value (in dollars) Coupons per year Settlement Maturity Current YTM Inflation rate 6 50% 1,090.00 100 1,000 S 9 10 01/01/00 01/01/14 5.20% 90% 12 13 16 17 18 19 20 21 Complete the following analysis. Do not hard code values in your calculations. Current dollar price Nominal return Real return 23 24 25 26 27
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