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24. Today Tim purchased a 15-year, 51,000 face value with 5.08% coupon rate compounding semi-annually (2.54% coupon rate payable every six month) at yield-to- maturity

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24. Today Tim purchased a 15-year, 51,000 face value with 5.08% coupon rate compounding semi-annually (2.54% coupon rate payable every six month) at yield-to- maturity of 8% compounding semi-annually. Assume Tim would sell his bond in one year when yield-to-maturity would change to 6% compounding semi-annually. Over the one year inflation would be 1.54% A) What is the bond price Tim paid today? (24) B) What would be the bond price Tim would sell in one year? (25) C) What would be the real retum of Tim's investment if we consider inflation? (26) (in percentage, two decimal places, for example 12.43%)

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