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P12-4 Calculating Returns (LOI) Suppose you bought a 8 percent coupon bond one year ago for $910. The bond sells for $955 today. Requirement 1:

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P12-4 Calculating Returns (LOI) Suppose you bought a 8 percent coupon bond one year ago for $910. The bond sells for $955 today. Requirement 1: Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? $45 Requirement 2: What was your total nominal rate of return on this investment over the past year? 4.95% Requirement 3: If the inflation rate last year was 3 percent, what was your total real rate of return on this investment? (Do not round intermediate calculations.) 1.89%

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