Suppose you bought a bond with an annual coupon rate of 4.2 percent a year ago for

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Suppose you bought a bond with an annual coupon rate of 4.2 percent a year ago for $900. The bond sells for $950 today. to. Assuming a face value of $1,000, what was the total dollar return on this investment over the past year?

1. What was your total nominal rate of return on this investment over the past year?

2. If last year's inflation rate was 2.5 percent, what was the total real rate of return on this investment?

Related Book For answer-question

Corporate Finance Core Principles and Applications

ISBN: 978-0077905200

3rd edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford

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Posted Date: May 13, 2023 11:42 AM

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Suppose you bought a bond with an annual coupon rate of 4.2 percent a year ago for

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Corporate Finance Core Principles and Applications

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