Question
Suppose you bought a bond with an annual coupon rate of 6.6 percent one year ago for $945. The bond sells for $980 today. a.
Suppose you bought a bond with an annual coupon rate of 6.6 percent one year ago for $945. The bond sells for $980 today. 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 percent rounded to 2 decimal places, e.g., 32.16.) Nominal rate of return % c. If the inflation rate last year was 1.5 percent, what was your total real rate of return on this investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Real rate of return %
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