What was your total real rate of return on investment

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Reference no: EM131358159

Suppose you bought a 14 percent coupon bond one year ago for $1,090. The bond sells for $1,150 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 8 percent, what was your total real rate of return on this investment?

Reference no: EM131358159

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