Question
Suppose you bought a bond with a coupon rate of 8.9 percent one year ago for $912. The bond sells for $956 today. Required: (a)
Suppose you bought a bond with a coupon rate of 8.9 percent one year ago for $912. The bond sells for $956 today. Required: (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? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Total nominal rate of return % (c) If the inflation rate last year was 4.4 percent, what was your total real rate of return on this investment? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Total real rate of return %
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