Illustrate what is nominal percent return

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Reference no: EM1380569

Q. Suppose you bought a ($1000 Face Value 8% coupon) bond one year ago for $1,090. Bond sells for $1,063 today.

1. Illustrate what is dollar amount return?

2. Illustrate what is nominal percent return?

3. Explain how would inflation alter those returns also illustrate what would real rate of return be?

Reference no: EM1380569

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