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Problem 1 2 - 4 Calculating Returns ( LO 1 ) Suppose you bought a 8 . 8 % coupon bond one year ago for
Problem Calculating Returns LO
Suppose you bought a coupon bond one year ago for $ The bond sells for $ today.
a Assuming a $ face value, what was your total dollar return on this investment over the past year? Omit $ sign in your response.
Total dollar return
$
b What was your total nominal rate of return on this investment over the past year? Round your answer to decimal places.
Nominal rate of return
c If the inflation rate last year was what was your total real rate of return on this investment? Do not round intermediate calculations. Round the final answer to decimal places. Use the Fischer formula in your calculations.
Real rate of return
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