________ 9. World Importers wants to raise $11 million by issuing 15-year, zero coupon bonds. The market requires a

7.8 percent return on similar bonds. The face value per bond will be $1,000. How many bonds must the

firm issue? Ignore all issue and transaction costs.

a. 11,000 bonds

b. 12,898 bonds

c. 34,662 bonds

d. 35,908 bonds

________ 10. Last year, you earned 11.67 percent on your investments. During that time period, inflation averaged

6.4 percent. What was your real rate of return based on the Fisher formula?

a. 4.953 percent b. 5.208 percent c. 5.513 percent d. 5.711 percent