Please include the excel formula Suppose you bought a bond with an annual coupon of 6 percent one year ago for $1,010. The bond sells for $1,025 today. a. Assuming a $1,000 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 year? c. If the inflation rate last year was 3 percent, what was your total real rate of return on this investment? Input area: Coupon rate 6% Initial price $1,010 Ending price $1,025 Par value $1,000 Inflation rate 3% (Use cells A6 to B10 from the given information to complete this question.) Output area: Coupon paid Dollar return Nominal return Real return
Please include the excel formula Suppose you bought a bond with an annual coupon of 6 percent one year ago for $1,010. The bond sells for $1,025 today. a. Assuming a $1,000 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 year? c. If the inflation rate last year was 3 percent, what was your total real rate of return on this investment? Input area: Coupon rate 6% Initial price $1,010 Ending price $1,025 Par value $1,000 Inflation rate 3% (Use cells A6 to B10 from the given information to complete this question.) Output area: Coupon paid Dollar return Nominal return Real return
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 9P
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Please include the excel formula
| Suppose you bought a bond with an annual coupon of 6 percent one year ago for $1,010. The bond sells for $1,025 today. a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? b. What was your total nominal c. If the inflation rate last year was 3 percent, what was your total real rate of return on this investment? |
| Input area: | |||
| Coupon rate | 6% | ||
| Initial price | $1,010 | ||
| Ending price | $1,025 | ||
| Par value | $1,000 | ||
| Inflation rate | 3% | ||
| (Use cells A6 to B10 from the given information to complete this question.) | |||
| Output area: | |||
| Coupon paid | |||
| Dollar return | |||
| Nominal return | |||
| Real return |
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