Assuming a $1,000 face value, what was your total dollar return on this investme

Question

Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?

What was your total nominal rate of return on this investment over the past year? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

If the inflation rate last year was 4 percent, what was your total real rate of return on this investment? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Explanation / Answer

Capital gain = 949 - 941 = 8
Coupon = 75
Total dollar return = 8 + 75 = 83
Nominal rate of return = 83 / 941 = 8.82%
Real return = 0.0882 / 1.04 - 1 = 2.21%

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