Suppose you bought a 74 percent coupon bond one year ago, Ask an Expert

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Suppose you bought a 7.4 percent coupon bond one year ago for $900. 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? (Round your answer to 2 decimal places.

c. If the inflation rate last year was 2 percent, what was your total real rate of return on this investment? (Round your answer to 2 decimal places.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91813172

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