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A 10-year 8% annual coupon bond sells for $1,100. a. Compute the current yield. b. Check if YTM is greater or lower than 8.00%. C.

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A 10-year 8% annual coupon bond sells for $1,100. a. Compute the current yield. b. Check if YTM is greater or lower than 8.00%. C. If YTM is 8% 1 year from today, what will be the price of bond a year from today? d. What is the rate of return from the investment, if you buy it today and sell it a year from today (assume YTM in year 1 is 8%)? If inflation is 3% during the year, what is the real rate of return? e

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