Question 2
Last year, you earned a rate of return of 8.16 percent on your bond investments. During that time, the inflation rate was 2.89 percent. What was your real rate of return?
Use the exact relationship between real and nominal rates. Enter answer in percents, accurate to two decimal places.
Question 3
GDebi, Inc. plans to issue 6.1 percent coupon bonds, with annual coupon frequency, 17 years to maturity and $1000 face value. If the prevailing market yield on bonds of similar riskiness and maturity is 8.2 percent, what would be the market price of GDebi's bonds?
Question 4
HexChat, Inc. has issued 16 year bonds 5 years ago. The bonds pay semiannual coupons, with a coupon rate of 3.3 percent, and $1000 face value. If your required return on this investment is 7.1 percent APR, how much would you be willing to pay for this bond?
Question 2
Last year, you earned a rate of return of 8.16 percent on your bond investments. During that time, the inflation rate was 2.89 percent. What was your real rate of return?
Use the exact relationship between real and nominal rates. Enter answer in percents, accurate to two decimal places.
Question 3
GDebi, Inc. plans to issue 6.1 percent coupon bonds, with annual coupon frequency, 17 years to maturity and $1000 face value. If the prevailing market yield on bonds of similar riskiness and maturity is 8.2 percent, what would be the market price of GDebi's bonds?
Question 4
HexChat, Inc. has issued 16 year bonds 5 years ago. The bonds pay semiannual coupons, with a coupon rate of 3.3 percent, and $1000 face value. If your required return on this investment is 7.1 percent APR, how much would you be willing to pay for this bond?
Related questions
2.
Wine and Roses, Inc. offers a 6.0 percent coupon bond with semiannual payments and a yield to maturity of 6.91 percent. The bonds mature in 12 years. What is the market price of a $1,000 face value bond?
| $1,410.62 | |
| $1,442.55 | |
| $926.59 | |
| $1,023.89 | |
| $1,484.04 |
| 4. The Lo Sun Corporation offers a 6.0 percent bond with a current market price of $788.50. The yield to maturity is 8.40 percent. The face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures? | ||||||||||
|
5.
A bond that pays interest annually yields a rate of return of 6.75 percent. The inflation rate for the same period is 2 percent. What is the real rate of return on this bond?
2.00 percent
4.66 percent
8.75 percent
3.38 percent
1.05 percent
