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Suppose you bought a bond with a coupon rate of 4.6 percent paid annually one year ago for $930. The bond sells for $955 today.
Suppose you bought a bond with a coupon rate of 4.6 percent paid annually one year ago for $930. The bond sells for $955 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?
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?
Real rate of return%
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