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A four-year bond has a 5% coupon rate and a face value of $100. If the current price of the bond is $110, calculate
A four-year bond has a 5% coupon rate and a face value of $100. If the current price of the bond is $110, calculate the yield to maturity of the bond (assuming annual interest payments). 5.00% 8.46% 2.35% 4.70% If the nominal interest rate per year is 7% and the inflation rate is 4%, what is the real rate of interest? 3.14% 1.82% 4.93% 2.88%
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Derivatives Markets
Authors: Rober L. Macdonald
4th edition
321543084, 978-0321543080
