Suppose you bought a 7 percent coupon bond one year ago for $1,040. The bond sells for $1,070 today.

Required:

(a)

Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? (Do not include the dollar sign ($).)

Total dollar return $

(b)

What was your total nominal rate of return on this investment over the past year? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Nominal rate of return percent

(c)

If the inflation rate last year was 4 percent, what was your total real rate of return on this investment? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Real rate of return percent

Required:

(a)

Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? (Do not include the dollar sign ($).)

Total dollar return $

(b)

What was your total nominal rate of return on this investment over the past year? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Nominal rate of return percent

(c)

If the inflation rate last year was 4 percent, what was your total real rate of return on this investment? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Real rate of return percent

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Suppose you bought a 7 percent coupon bond one year ago for $1,040. The bond sells for

$1,070 today.

Required:

(a)

Assuming a $1,000 face value, what was your total dollar return on this investment...