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Coupon bond: Face Value (F) $20,000 Coupon Payment (C) = $200 Current Bond Price (P) = $4,000 Time to maturity: 5 years Calculate the current

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Coupon bond: Face Value (F) $20,000 Coupon Payment (C) = $200 Current Bond Price (P) = $4,000 Time to maturity: 5 years Calculate the current yield (ic). Set up the equation used to calculate the yield to maturity (i) - Write only the equation and do not solve it. If you hold the bond for one year and then sel! it next year for P+1-$4,500, calculate the return (RET) . o if expected inflation =196, calculate real return (RET). If you hold the bond for one year and then sell it next year for Pt+1 $3,500, calculate the return (RET). o fexpected inflation-: 1%, calculate the real return (RET). What can you conclude

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