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Please review the below with the calculation and solution. You purchased a $1,000 bond with a coupon rate of 8 % on January 1, 2021

Please review the below with the calculation and solution.

You purchased a $1,000 bond with a coupon rate of 8 % on January 1, 2021 for $910. On the same date, you also purchased a share of National Rail for $81. In 2021 you received a dividend of $2.50 on the National Rail share. It is now January 1, 2022 and the bond is selling for $950 and the National Rail share is worth $89.

Round all answers to two decimal points.

What was your total dollar return on the bond over the past year? What was your total nominal return on the bond over the past year? If the inflation rate last year was 5%, what was your total real rate of return on the bond? Compute the total percentage return on the National Rail share. What was the dividend yield on the National Rail share? What was the capital gain yield on the National Rail share?

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