What was your total nominal rate of return on investment

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Reference no: EM131259482

Suppose you bought a bond with an annual coupon rate of 7.2 percent one year ago for $945. The bond sells for $990 today.

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

Total dollar return $

b. What was your total nominal rate of return on this investment over the past year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Nominal rate of return %

c. 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. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Real rate of return %

Reference no: EM131259482

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