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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 past year? If the inflation rate last year was 4 percent, what was your total real rate of return on this investment? Multiple Choice Nominal rate of return =7.35% Real rate of return =3.22% Nominal rate of return =915% Real rate of return =4.95% : Nominal tate of return =2.45% Real rate of return =1.49% Nominal tale of return =6.92% Real rote of retum =5.65%

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