Solution-What will be your total nominal return over the

What will be your total nominal return over the two years

Reference no: EM133053340

Question - Suppose that you buy a two-year 7.7% bond at its face value.

Required -

a1. What will be your total nominal return over the two years if inflation is 2.7% in the first year and 4.7% in the second?

a2. What will be your total real return?

b. Now suppose that the bond is a TIPS. What will be your total 2-year real and nominal returns?

Reference no: EM133053340

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What will be your total nominal return over the two years

Reference no: EM133053340

Reference no: EM133053340

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