Calculating Returns on a 7% Coupon Bond Investment: A Financial Math Problem

  • Thread starter Thread starter dragonfly1
  • Start date Start date
Join the discussion
Registration is free. Start your own thread to ask a follow-up.
1 reply · 4K views
dragonfly1
Messages
1
Reaction score
0
calculating returns:
suppose you bought a 7 percent coupon bond one year ago for $893. the bond sells for $918 today.
a. assuming a $1000 face value, what was your total dollar return on this investment over the past year.
b.what was your total nominal rate of return on this investment over the past yr.
c.if inflation rate last year was 4 percent, what was your total real rate of return on this investment?

can someone help solve this problem
 
Physics news on Phys.org
dragonfly1 said:
calculating returns:
suppose you bought a 7 percent coupon bond one year ago for $893. the bond sells for $918 today.
a. assuming a $1000 face value, what was your total dollar return on this investment over the past year.
b.what was your total nominal rate of return on this investment over the past yr.
c.if inflation rate last year was 4 percent, what was your total real rate of return on this investment?

can someone help solve this problem
Being that you are new to this forum, you might not have had a chance to look at the Rules.

In the section on homework help, it says that you must make an effort at solving the problem you post before anyone can give you any help. You should also include relevant formulas.