Question
Suppose you bought a 8 percent coupon bond one year ago for $880. The bond sells for $910 today. a. Assuming a $1,000 face value,
Suppose you bought a 8 percent coupon bond one year ago for $880. The bond sells for $910 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 3 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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