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Suppose you bought a bond with an annual coupon of 5 percent one year ago for $1,020. The bond sells for $1,045 today. Assuming a

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Suppose you bought a bond with an annual coupon of 5 percent one year ago for $1,020. The bond sells for $1,045 today. Assuming a $1,000 face value, what was your total nominal rate of return on this investment over the post year? If the inflation rate last year was 4 percent, what was your total reat rote of return on this invostment? Multiple Choice Nominal rate of return =692x Real rate of return =5.65x Nominal rate of return =2.45% Real rate of return =1.49% Nominal rate of reture =4908 Real rate of retum =0.875 Nominai rate of cetum =735% feal rate of retum =322N Nominal cate of cetum =315% Aeal rate of return =495

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