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17. According to the Bank of Canada website, the latest annual inflation rate for Canada is 6.8%. If you are earning 3% on a
17. According to the Bank of Canada website, the latest annual inflation rate for Canada is 6.8%. If you are earning 3% on a bank deposit, what is your real interest rate, using the approximation to the Fisher Equation? 18. A 20-year, $1,000 bond with a 4% coupon, paid semi-annually, is currently selling with a 6% yield to maturity (YTM). How much should you pay for the bond? Font 19. You can buy a $1,000, 5-year bond with a 6% coupon, paid semi-annually, at a price of $1,043.76. What annual YTM are you earning?
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