Total dollar return on investment

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Consider a 9.0% coupon bond that you bought one year ago for $930. You observe that the bond sells for $890 today. The bond has $1,000 face value and matures in 10 years.

a. 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

Reference no: EM133061791

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