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Suppose you bought a 7.2 percent coupon bond one year ago for $895. The bond sells for $922 today. Required: (a) Assuming a $1,000 face
Suppose you bought a 7.2 percent coupon bond one year ago for $895. The bond sells for $922 today. |
Required: |
(a) | Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? 9911111.0612.327.696.58 |
(b) | What was your total nominal rate of return on this investment over the past year? 9911111.0612.327.696.58 |
(c) | If the inflation rate last year was 4.2 percent, what was your total real rate of return on this investment? 9911111.0612.327.696.58 |
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