Suppose you bought a 10 percent coupon bond one year ago for $1,200. The bond sells for $1,270 today. Requirement
1: Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?
2: What was your total nominal rate of return on this investment over the past year?
3: If the inflation rate last year was 9 percent, what was your total real rate of return on this investment? (Do not round intermediate calculations.)