Suppose you bought a 5 percent coupon bond one year ago for $940. The bond sells for $1,005 today.

Requirement 1:

Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?

Requirement 2: What was your total nominal rate of return on this investment over the past year?

Requirement 3: If the inflation rate last year was 8 percent, what was your total real rate of return on this investment?