071 poin Question 32 Absalom Motors's 8.10% coupon rate, semiannual payment, $1,000 par value bonds that mature in 25 years are callable 10 years from now at a price of $1,081. The bonds sell at a price of $1,250, and the yield curve is flat. Assuming that interest rates in the economy are expected to remain at their current level, what is the best estimate of the nominal interest rate on new bonds? 3.07% x 6.13% 8.10% 5.44% 2.72% Question 33 0 / 1 pop The real risk-free rate is 2.00%. Inflation is expected to be 4.00% this year, 5.00% next year, and 6.00% thereafter. The maturity risk premium is estimated to be 0.10 (t - 18%, where t = number of years to maturity. What is the nominal interest rate on a 5-year Treasury security? 8.40% 7.80% 2.40% x 7.40% 0 / 1 point Question 34 Suppose Hillard Manufacturing sold an issue of bonds with a 30-year maturity, a $1,000 par value, a 7.50% coupon rate, and semiannual interest payments. Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 6.00%. At what price would the bonds sell? $1,202.24 $1,206.47 $1,000.00 X $1,201.09 $1,147.00