Suppose you bought a bond with an annual coupon rate of 52


Suppose you bought a bond with an annual coupon rate of 5.2 percent one year ago for $920. The bond sells for $970 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? (

Nominal rate of return % ____________

c. If the inflation rate last year was 1.5 percent, what was your total real rate of return on this investment?

Real rate of return %

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Financial Management: Suppose you bought a bond with an annual coupon rate of 52
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