Question

9. Award: 6.67 out of 10.00 points Suppose you bought a bond with a coupon rate of 7.5 percent one year ago for $941. The bond sells for $949 today. Required: (a) Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? Total dollar return $83 (b) What was your total nominal rate of return on this investment over the past year? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Total nominal rate of return 8.82 % (c) If the inflation rate last year was 4 percent, what was your total real rate of return on this investment? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Total real rate of return 2.21 %

          9.
Award: 6.67 out of 10.00 points
Suppose you bought a bond with a coupon rate of 7.5 percent one year ago for $941. The bond sells for
$949 today.
Required:
(a) Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?
Total dollar return
$83
(b) What was your total nominal rate of return on this investment over the past year? (Do not round
intermediate calculations. Enter your answer as a percentage rounded to 2
decimal places (e.g., 32.16).)
Total nominal rate of return
8.82 %
(c) If the inflation rate last year was 4 percent, what was your total real rate of return on this investment?
(Do not round intermediate calculations. Enter your answer as a percentage rounded to 2
decimal places (e.g., 32.16).)
Total real rate of return
2.21 %

9.
Award: 6.67 out of 10.00 points
Suppose you bought a bond with a coupon rate of 7.5 percent one year ago for 941. The bond sells for949 today.
Required:
(a) Assuming a 1,000 face value, what was your total dollar return on this investment over the past year?
Total dollar return83
(b) What was your total nominal rate of return on this investment over the past year? (Do not round
intermediate calculations. Enter your answer as a percentage rounded to 2
decimal places (e.g., 32.16).)
Total nominal rate of return
8.82 %
(c) If the inflation rate last year was 4 percent, what was your total real rate of return on this investment?
(Do not round intermediate calculations. Enter your answer as a percentage rounded to 2
decimal places (e.g., 32.16).)
Total real rate of return
2.21 %

Added by Bethany A.

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