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Suppose you bought a bond with an annual coupon rate of 7.2 percent one year ago for $945. The bond sells for $990 today. a.
Suppose you bought a bond with an annual coupon rate of 7.2 percent one year ago for $945. The bond sells for $990 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? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
c. | If the inflation rate last year was 3 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.) |
a. Total dollar return b. Nominal rate of return Real rate of return 96 c. 96
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