Calculating Returns Suppose you bought an 8 per cent coupon bond one year ago for 1,200. The
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Calculating Returns Suppose you bought an 8 per cent coupon bond one year ago for €1,200. The bond sells for €1,074 today.
(a) Assuming a €1,000 face value, what was your total euro return on this investment over the past year?
(b) What was your total nominal rate of return on this investment over the past year?
(c) If the inflation rate last year was 3 per cent, what was your total real rate of return on this investment?
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Related Book For
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
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