Suppose you bought a 10 percent coupon bond one year ago


Suppose you bought a 10 percent coupon bond one year ago for $910. The bond sells for $990 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 6 percent, what was your total real rate of return on this investment? (Do not round intermediate calculations.)

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Financial Management: Suppose you bought a 10 percent coupon bond one year ago
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