Total nominal rate of return on investment

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Suppose you bought a 7.1% coupon bond one year ago for $980. The bond sells for $950 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.)

c. If the inflation rate last year was 3%, what was your total real rate of return on this investment? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Reference no: EM132576787

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