Question
Suppose you bought a bond with a coupon rate of 7.5 percent one year ago for $898. The bond sells for $928 today. Assuming a
Suppose you bought a bond with a coupon rate of 7.5 percent one year ago for $898. The bond sells for $928 today.
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 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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