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AA ALAT Albania The next two questions involve the following information, The real interest rate, , is the nominal interest rate, minus inflation, it in

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AA ALAT Albania The next two questions involve the following information, The real interest rate, , is the nominal interest rate, minus inflation, it in formal terms, Ti-. For example, if an investment offers an annual return of 5 percent, and inflation is 2 percent, then the real interest rate is 3 percent 29. You purchase a $1.000 face value bood for $800. The coupon is $100 per year, and inflation is 4 percent per year. What is the nominal yield on the bood? (A) 6 percent (B) 8.5 percent (C) 10 percent (D) 12.5 percent 30. You purchase a $1.000 face value bond for $800. The compon is 5100 per year, and inflation is 4 percent per year. What is the real coupon rate on the bond? (A) 6 percent (B) 8.5 percent (C) 10 percent (D) 12.5 percent al 108 AM

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