Consider a 9.0% coupon bond that you bought one year ago for $930. You observe that the
Fantastic news! We've Found the answer you've been seeking!
Question:
Consider a 9.0% coupon bond that you bought one year ago for $930. You observe that the bond sells for $890 today. The bond has $1,000 face value and matures in 10 years.
a. 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%, what was your total real rate of return on this investment?
Related Book For
Intermediate Accounting
ISBN: 978-0470616314
IFRS edition volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date: