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Suppose you bought a 7 percent coupon bond one year ago for $893. The bond sells for $918 today.

This question was answered on Jan 05, 2013. View the Answer
Suppose you bought a 7 percent coupon bond one year ago for $893. The bond sells for $918 today.

Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?
What was your total nominal rate of return on this investment over the past year?
If the inflation rate last year was 4 percent, what was your total real rate of return on this investment?
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Suppose you bought a 7 percent coupon bond one year ago for $893. The bond sells for $918 today.
Assuming a $1,000 face value, what was your total dollar return on this investment over the past...

This question was asked on Jan 02, 2013 and answered on Jan 05, 2013.

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