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Suppose you bought a bond with a coupon rate of 6.5 percent one year ago for $1032. The bond sells for $1020 today. A. Assuming
Suppose you bought a bond with a coupon rate of 6.5 percent one year ago for $1032. The bond sells for $1020 today.
A. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? |
b. What was your total nominal rate of return on this investment over the past year? |
c. If the inflation rate last year was 3 percent, what was your total real rate of return on this investment? |
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