Question: (Ehapter 12: Dropbox 2.4 Problem 1: Calculating Returns Suppose you bought a bond with an annual coupon of 7 percent one year ago for $970.

(Ehapter 12: Dropbox 2.4 Problem 1: Calculating Returns Suppose you bought a bond with an annual coupon of 7 percent one year ago for $970. The bond sells for $940 today and has a standard $1000 face value. The inflation rate last year was 3 percent. 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) What was your total rate of real return on this investment

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