Question: PLEASE ANSWER IN EXCEL FORM WITH EXACT CELL FORMULAS USED TO SOLVE EACH OF THE YELLOW BOXES. Suppose you bought a bond with an annual

PLEASE ANSWER IN EXCEL FORM WITH EXACT CELL FORMULAS USED TO SOLVE EACH OF THE YELLOW BOXES.

PLEASE ANSWER IN EXCEL FORM WITH EXACT CELL FORMULAS USED TO SOLVEEACH OF THE YELLOW BOXES. Suppose you bought a bond with an

Suppose you bought a bond with an annual coupon of 7 percent 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? b. What was your total nominal rate of return on this investment over the past year? c. If the inflation rate last year was 3 percent, what was your total real rate of return on this investment? Coupon paid Initial price Ending price Inflation rate $ $ $ 70 970 940 3% Complete the following analysis. Do not hard code values in your calculations. a. Dollar return $ 40.00 b. Nominal return ... Sheet1 ... + READY 100% Attempt(s) 1/3 Hint Step: The total nominal return is the ending price minus the beginning price plus the coupon payment, all divided by the beginning price. 17 18 c. Real return ! 19 ... Sheet1 ... + 9 0 0 - + 100% READY Attempt(s) 3/3 Hint

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