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Last year you bought a bond for $902. The annual coupon rate for this bond...

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Finance

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Last year you bought a bond for $902. The annual coupon rate for this bond is 7.9%, and it has a face value of $1,000. You like to invest in bonds because they have lower systematic risk that stocks. The price of the bond today is $936. You want to compare it to other investments you hav made to determine how well you did. a. What was your total rate of return on this investment over the past year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.) a. Total nominal rate of return % What is the annual amount of the coupon? (Do not round intermediate calculations and enter your answer as a dollar value rounded to 2 decimal places, e.g., 12.34.) C. Coupon Amount Answer (a) is the Nominal or Stated rate. If the inflation rate last year was 4.4%, what was your total real rate of return on this investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34.) d. Total real rate of return %

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