PLEASE USE EXCEL TO SOLVE - AND USE THE FISHER EQUATION

D18 B E F H K 3 Suppose you bought a bond with an annual coupon of 7 percent one year ago for $970. The bond sells for $940 today. a. Assuming a $1,000 face value, 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 3 percent, what was your total real rate of return on this investment? 4 5 6 7 Coupon paid Initial price Ending price Inflation rate $ $ $ 70 970 940 3% 00 9 10 11 12 Complete the following analysis. Do not hard code values in your calculations. 13 14 a. Dollar return $ 40.00 15 16 b. Nominal return 4.12% 17 18 c. Real return 19 E 100% Sheet1 READY Attempt(s) 7/10 Step: Use the Fisher equation to calculate the real return. Hint