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ABC Co . bond has 1 2 years until maturity and a coupon rate of 7 percent payable annually and sells for $ 1 ,
ABC Co bond has years until maturity and a coupon rate of percent payable annually and sells for $
a What is the the current yield on the bond
b What is the yield to maturity?
c What will be the price of the bond if its yield to maturity is percent year from now?
d if the yield to maturity, one year from now, is what will be your rate of return if you buy it today and sell it in one year after receiving the coupon payments?
e If the yield to maturity, one year from now, is and the inflation rate is what will be your real rate of return if you buy it today and sell it in one year after receiving the coupon payments?
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