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Suppose you bought a 10 percent coupon bond one year ago for $1,130. The bond sells for $1,200 today. Requirement 1: Assuming a $1,000 face
Suppose you bought a 10 percent coupon bond one year ago for $1,130. The bond sells for $1,200 today. Requirement 1: Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? (Click to select) Requirement 2: What was your total nominal rate of return on this investment over the past year? (Click to select) v Requirement 3: If the inflation rate last year was 5 percent, what was your total real rate of return on this investment? (Do not round intermediate calculations.) (Click to select) V You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 5 percent, -13 percent, 27 percent, 18 percent, and 15 percent. The average inflation rate over this period was 3.2 percent and the average T-bill rate was 4.85 percent. Requirement 1: What was the average real return on Crash-n-Burn's stock? (Do not round intermediate calculations.) (Click to select) Requirement 2: What was the average nominal risk premium on Crash-n-Burn's stock? (Do not round intermediate calculations.) (Click to select) v
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