Suppose you bought a 7.1% coupon bond one year ago for $980. The bond sells for $950
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Question:
Suppose you bought a 7.1% coupon bond one year ago for $980. The bond sells for $950 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.)
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.)
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