Solution-What are your nominal and real rates of return

What are your nominal and real rates of return assume the

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Suppose you buy a bond for $ 1,020 with a 15-year maturity paying an annual coupon of $80. A year later interest rates have dropped and the bond"s price has increased to $1,050. What are your nominal and real rates of return? Assume the inflation rate is 4 percent.

Reference no: EM13571285

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What are your nominal and real rates of return assume the

Reference no: EM13571285

Reference no: EM13571285

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