P12-4 Calculating Returns [LO1] Suppose you bought a 12 percent coupon bond one year ago...
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P12-4 Calculating Returns [LO1] Suppose you bought a 12 percent coupon bond one year ago for $1,130. The bond sells for $1,190 today. Requirement 1: Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? (Click to select) Requirement 2: What was your total rate of return on this investment over the past year (in percent)? (Click to select) V Requirement 3: If the inflation rate last year was 6 percent, what was your total "real" rate of return on this investment? Assume that the answer for "Requirement 2" above is in "nominal" terms, and then use the Fisher Effect Formula (see Bond chapter) to find the "real" rate of return. (Do not round intermediate calculations.) (Click to select) V Suppose a stock had an initial price of $69 per share, paid a dividend of $1.45 per share during the year, and had an ending share price of $83. Compute the percentage total return. Multiple Choice 5 22.39 18.61 28.41 O 23.51
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