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An investment offers a total return of 12.5 percent over the coming yearJanice Yellen thinks the total real return on this investment will be only

An investment offers a total return of 12.5 percent over the coming yearJanice Yellen thinks the total real return on this investment will be only 3.0 percentWhat does Janice believe the inflation rate will be over the next year? image text in transcribed
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An investment offers a total return of 12.5 percent over the coming year, Janice Yellen thinks the total real return on this investment will be only 3.0 percent. What does Janice believe the inflation rate will be over the next year? Multiple Choice 0.6.46% 9.22% -8.44% Say you own an asset that had a total return last year of 15.5 percent. If the inflation rate last year was 5 percent, what was your real return? Multiple Choice 10.10% 10.20% 10.00% Workman Software has 9.8 percent coupon bonds on the market with 10 years to maturity. The bonds make semiannual payments and currently sell for 978 percent of par. a. What is the current yield on the bonds? K 10.52% 10.02% O 0.20% O 11.02% hces b. The YTM? O 5.08% 10.30% 10.16% 10.34% c. The effective annual yield? 10.94% 0.10% 10.42% Chamberlain Company wants to issue new 10-year bonds for some much-needed expansion projects. The company currently has 7.8 percent coupon bonds on the market that sell for $798.52, make semiannual payments, and mature in 10 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? Assume a par value of $1,000 Multiple Choice 11.50% 10.90% 5.60%

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