10. Bond Returns. (LO2) a. If the bond in Quiz Question 6 has a yield to maturity...

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10. Bond Returns. (LO2)

a. If the bond in Quiz Question 6 has a yield to maturity of 8% 1 year from now, what will its price be?

b. What will be the rate of return on the bond?

c. If the inflation rate during the year is 3%, what is the real rate of return on the bond?

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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