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Suppose you bought a 8.4 percent coupon bond one year ago for $907. The bond sells for $946 today. Required: (a) Assuming a $Youve observed the following returns on Staverosky Corporations stock over the past five years: -28.2 percent, 15.8 percent

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add: less: price one year later = coupon value one year ago Total dollar return $946.00 $84.00 $907.00 $123.00Arithmetic average nominal return = 9.60% (-0.282+0.158+0.346+0.034+0.224)/5 Average real return = 6.06% (1+0.096)/(1.0334)-1

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