Question: HW Ch10 Problem 10-4 Calculating Returns (LO 1] 3 Suppose you bought a bond with an annual coupon rate of 8.7 percent one year ago
HW Ch10 Problem 10-4 Calculating Returns (LO 1] 3 Suppose you bought a bond with an annual coupon rate of 8.7 percent one year ago f $910. The bond sells for $952 today. 12.5 points eBook a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? (Do not round intermediate calculations and round your answe to the nearest whole number, e.g., 32.) b. What was your total nominal rate of return on this investment over the past year? (DC not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.) c. If the inflation rate last year was 4.2 percent, what was your total real rate of return on this investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) References a. Total dollar return b. Total nominal rate of return c. Total real rate of return % %
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