1. Suppose you bought a 6 percent coupon bond one year ago for $890. The bond

1. Suppose you bought a 6 percent coupon bond one year ago for $890. The bond
sells for $915 today.

(a)

Assuming a $1000 face value what was your total dollar return on this investment over the past year?

Total dollar return $_____________ (round to 2 decimal places)

(b)

What was your total nominal rate of return on this investment over the past year?

Nominal rate of return __________ percent (round to 2 decimal places)

(c)

If the inflation rate last year was 12 percent what was your total real rate of return on this investment?

Real rate of return ___________ percent (negative amount should be indicated with a minus sign round answer to 2 decimal
places)