Suppose you bought a 8.5% coupon bond one year ago for $880. The bond sells for $840 today. a. Assuming a $1,000 face va

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Suppose You Bought A 8 5 Coupon Bond One Year Ago For 880 The Bond Sells For 840 Today A Assuming A 1 000 Face Va 1 (216.3 KiB) Viewed 14 times

Suppose you bought a 8.5% coupon bond one year ago for $880. The bond sells for $840 today. a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? (Omit $ sign in your response.) Total dollar return b. What was your total nominal rate of return on this investment over the past year? (Round your answer to 2 decimal places.) Nominal rate of return % c. If the inflation rate last year was 4%, what was your total real rate of return on this investment? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Use the Fischer formula in your calculations.) Real rate of return %