ECON 2035 Chapter : Chapter 4 Questions
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Chapter 4 questions: the most accurate measure of interest rates is, the coupon rate, yield to maturity, current yield, discounted present value. If the interest rate is 5%, the present value of 1,000 to be received five years from today is: . 53. The first payment is to be received today. The second payment is to be received one year from today, and the third payment two years from today. If the yield to maturity on a bond exceeds the coupon rate, the price of the bond is below its face value. If the yield to maturity on a bond exceeds the coupon rate, the price of the bond is above its face value. 8% value of ,000, held for one year, and because interest rates rose, sold after one year for : -3. 3% 3: blank, blank, if the nominal interest rate is 4% and the expected rate of inflation is 2%, then the real interest rate is.
