1. Assume that nominal risk rate is 7%/ what would be the value at the end of 10 years of $1000 invested today with monthly compounding?
2. If you expect the inflation rate to be 3% over the next year and a one year. T bill has an interest of 5%, then the real interest rate on this bond is?
3. Assume that the British pound is worth 1.4242 U.S dollars. if a new Jaguar costs $138,000. what is the cost in British pounds?
4. What is the yield to maturity of bond that pays 11% coupon rate with semi-annual coupon payments , has a oar value of $1000, matures in 9 years and is currently selling for $897?