Question: Suppose you bought a bond with an annual coupon of 7 percent one year ago for $ 9 1 0 . The bond sells for
Suppose you bought a bond with an annual coupon of percent one year ago for $ The bond sells for $ toda,
a Assuming a $ 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?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
c If the inflation rate last year was percent, what was your total real rate of return on this investment?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
Answer is complete but not entirely correct.
tablea Total dollar return,$ b Nominal rate of return,c Real rate of return,
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