Question
A bond with a coupon rate of 5.88 percent and semiannual coupon payments matures in 20 years. The YTM is 6.91 percent. What is the
A bond with a coupon rate of 5.88 percent and semiannual coupon payments matures in 20 years. The YTM is 6.91 percent. What is the effective annual yield?
5.97%
5.88%
7.31%
6.91%
7.03%
An investment had a nominal return of 10.7 percent last year. The inflation rate was 2.4 percent. What was the real return on the investment?
9.01%
8.11%
10.43%
13.36%
7.50%
There are zero coupon bonds outstanding that have a YTM of 5.67 percent and mature in 24 years. The bonds have a par value of $10,000. If we assume semiannual compounding, what is the price of the bonds?
$2,526.45
$2,548.23
$2,613.57
$2,661.70
$2,509.03
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