Suppose you bought a 10 percent coupon bond one year ago for $1,080. The bond sells for

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Suppose you bought a 10 percent coupon bond one year ago for $1,080. The bond sells for $1,100 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?

c. If the inflation rate last year was 4 percent, what was your total real rate of return on this investment?

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Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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Question Posted: Oct 03, 2023 12:34 PM

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Suppose you bought a 10 percent coupon bond one year ago for $1,080. The bond sells for

Question:

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a To calculate your total dollar return on the investment you need to consider both the coupon payme...View the full answer

Fundamentals Of Corporate Finance

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