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Suppose you bought a 4.4 percent coupon bond one year ago for $850. The bond sells for $900 today. a. Assuming a $1,000 face value,
Suppose you bought a 4.4 percent coupon bond one year ago for $850. The bond sells for $900 today. |
a. | Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? |
Total dollar return | $ |
b. | What was your total nominal rate of return on this investment over the past year? (Round your answer to 2 decimal places. (e.g., 32.16)) |
Nominal rate of return | % |
c. | If the inflation rate last year was 1.5 percent, what was your total real rate of return on this investment? (Round your answer to 2 decimal places. (e.g., 32.16)) |
Real rate of return | % |
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