a. If an investment has a nominal return of 3.8% per year, while the inflation is expected to be 3.6% per year, what would be its real return? What if the inflation is 4.2%? b. ABC Retailers just issued 200 16-year bonds with face value of 5,000. The quoted price of those bonds is 96.268, and they pay coupon twice a year. If the yield to maturity on this bond is 5.27%, what is the coupon rate? What is the dollar price of each of those bonds? What is the total value of the bonds outstanding? c. A company just paid $1.23 in dividends per share, and it has a dividend payout of 38%. Considering that the PE ratio is 8 times, determine the price of this company's individual stocks. d. If the coupon rate of a bond is 3.05% and yield to maturity 6.48%, and if a bondholder has a marginal tax rate of 21%, determine their after tax yield in this case. e. No Name Co issues a bond today that will pay a coupon of 8%, twice a year. The yield to maturity for this company is 4.8%. Calculate the price of this bond if it matures in (a) 6 years, (b) 12, and (c) 22.5 years, knowing that its face value is GBP 10,000. What happens to the price of this bond if at the same day of the issue, the yield to maturity changes to 4.6%? What if the YTM change is to the opposite direction, to 5%? f. Let's Study Inc. is a tutoring company that is considering issuing bonds to finance the expansion of its activities. The managers thought about bonds with 10 or 15 years to maturity, with a coupon rate of 6%, paid semiannually. The face value of those bonds would be $1,000 and they would expect those bonds to pay just as much as investors require, being sold at par at the issuance date. Suppose that an investor is interested in the company's bonds, and they expect that the interest rates (YTM) are going to change immediately, decreasing by 2 percentage points compared to the YTM at issue. Which maturity bond would be better for this investor, the 10 or 15-year? What would be the dollar gain per bond with the expected immediate YTM change in each case? g. Find the coupon dollar value and coupon rate of a bond that has face value of $1,000, YTM of 6.55%, semiannual coupon payments, and is quoted at 96.49 of par value. h. Leveraged Corporation has bonds with face value $1,000 at the current price of $1,400. If the semiannual coupon value is $60 ($60 every six months), maturing in exactly 28 years from now, calculate the YTM of this bond. i. Company RS's bonds outstanding have coupon rate of 6% and semiannual payments. If the YTM on this bond is 7.9%, and considering that the face value of each bond is $10,000, calculate the price of these bonds if the maturity will happen in exactly 26 years from now.