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Suppose you bought a 7.7 percent coupon bond one year ago for $900. The bond sells for $932 today. Required: (a) Assuming a $1,000 face
Suppose you bought a 7.7 percent coupon bond one year ago for $900. The bond sells for $932 today. |
Required: |
(a) | Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?(Do not include the dollar sign ($).) |
Total dollar return | $ |
(b) | What was your total nominal rate of return on this investment over the past year? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) |
Total nominal rate of return | % |
(c) | If the inflation rate last year was 4.2 percent, what was your total real rate of return on this investment?(Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) |
Total real rate of return | % |
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