Question: Calculating Returns Suppose you bought a bond with a 4.9 percent coupon rate one year ago for $1010. The bond sells for $1052 today. Assuming
Calculating Returns Suppose you bought a bond with a 4.9 percent coupon rate one year ago for $1010. The bond sells for $1052 today.
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Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?
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What was your total nominal rate of return on this investment over the past year?
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If the inflation rate last year was 3 Percent, what is your total real rate of return on this investment?
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