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A bond has 10 years until maturity, a coupon rate of 8.2%, and sells for $1,095. a. If the bond has a yield to maturity
A bond has 10 years until maturity, a coupon rate of 8.2%, and sells for $1,095. a. If the bond has a yield to maturity of 8.2% 1 year from now, what will its price be? Price b. What will be the rate of return on the bond? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return 1% c. If the inflation rate during the year is 2.6%, what is the real rate of return on the bond? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Real rate of return 1%
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