Question: hello i need help with this question step by step please and thank you Suppose you bought a 7% coupon bond one year ago for
hello i need help with this question step by step please and thank you
Suppose you bought a 7% coupon bond one year ago for $970. The bond sells for $940 today. a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? (Omit $ sign in your response.) Total dollar return b. What was your total nominal rate of return on this investment over the past year? (Round your answer to 2 decimal places.) Nominal rate of return % c. If the inflation rate last year was 3%, what was your total real rate of return on this investment? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Real rate of return %
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