1. A 12-year, semiannual coupon bond sells for $1,150. The bond has a par value of $1,000 and a yield to maturity of 6 percent. What is the bond's coupon rate? A company plans to issue new zero-coupon bonds with a par value of $1,000 to fund a new project. The bonds will have a YTM of 9 percent and mature in 18 years. If we assume semiannual compounding, at what price will the bonds sell? An investment had a nominal return of 8 percent last year. The inflation rate was 4 percent. What was the real return on the investment?