What was your total dollar return on this investment over

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Reference no: EM132003105

Suppose you bought a 7 percent coupon bond one year ago for $1,080. The bond sells for $1,140 today.

Requirement 1: Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?

Requirement 2: What was your total nominal rate of return on this investment over the past year?

Requirement 3: If the inflation rate last year was 7 percent, what was your total real rate of return on this investment? (Do not round intermediate calculations.)

Reference no: EM132003105

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