What is your total dollar return on the investment


Problem:

You buy a 10% coupon bond 1 year ago for $1,060 it has a 1,000 face value and this bond sells for $1,085 today.

1. what is your total dollar return on this investment over the past year?

2. what is the total nominal rate of return over the past year?

3. if the inflation rate last year was 9%, what is your total real rate of return on this investment?

The same for these numbers:

Buy a 16% coupon bond one year ago for $1,010, the bond sells today for $1,045, and for number three the inflation rate last year was 7%.

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Finance Basics: What is your total dollar return on the investment
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