Question
A 10-year bond with a face value of 1,000 is selling 15% higher than its face. A government bond is issued at 5% where analyst
A 10-year bond with a face value of 1,000 is selling 15% higher than its face. A government bond is issued at 5% where analyst believes that it would require an additional 6%. What is the effective interest rate of the bond, when the inflation is performing at 2%?
A nominal interest rate of 12% was found to be inclusive of 5% debt margin. If the inflation should be is 4% instead of 3% considered in the determination of the nominal interest rate, further if the margin to be inputted should be 1% lower than what was originally assumed.What is the adjusted effective interest?
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