Suppose you bought a 4 percent coupon bond one year ago for, Ask an Expert

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Suppose you bought a 4 percent coupon bond one year ago for $1,130. The bond sells for $1,200 today.

Requirement 1:
Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?

Requirement 2:
What was your total nominal rate of return on this investment over the past year?

Requirement 3:
If the inflation rate last year was 3 percent, what was your total real rate of return on this investment? (Do not round intermediate calculations.)

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9869937

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