Calculating Returns Suppose you bought a 6 percent coupon bond one year ago for $1,040. The...

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Calculating Returns Suppose you bought a 6 percent coupon bond one year ago for $1,040. The bond sells for $1,063 today. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? What was your total nominal rate of return on this investment over the past year? If the inflation rate last year was 3 percent, what was your total real rate of return on this investment? Calculating Returns Suppose you bought a 6 percent coupon bond one year ago for $1,040. The bond sells for $1,063 today. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? What was your total nominal rate of return on this investment over the past year? If the inflation rate last year was 3 percent, what was your total real rate of return on this investment?

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Calculating Returns for Bond Investment Given Coupon rate6 Initial purchase price1040 ... View the full answer