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The following table gives annual, end of year prices of a bond and of the consumer prices index. year bond value CPI value 2006 36.9

The following table gives annual, end of year prices of a bond and of the consumer prices index.

year bond value CPI value
2006 36.9 108.0
2007 39.8 110.3
2008 42.4 113.6
2009 38.1 116.1
2010 36.4 118.4
2011 39.2 120.9
2012 44.6 123.2
2013 45.1 125.4

(a) Calculate the simple returns. (b) Calculate the continuously compounded returns (log return). (c) Calculate the prices of the bond each year in 2013 terms.

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