Suppose you bought a bond with an annual coupon of 9 percent one year ago...
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Accounting
| Suppose you bought a bond with an annual coupon of 9 percent one year ago for $940. The bond sells for $990 today. |
| Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? | |
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| What was your total nominal rate of return on this investment over the past year? | |
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| If the inflation rate last year was 8 percent, what was your total real rate of return on this investment? | |
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