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Interest Rates and Bond Valuation a) Using the following information: $1,000 par value, 11% yield, coupon payment of $100 annually, 10 years to maturity: 1)

Interest Rates and Bond Valuation a) Using the following information: $1,000 par value, 11% yield, coupon payment of $100 annually, 10 years to maturity: 


1) Calculate the price of the bond?


2) If the coupon rate is 8%, Calculate the yield to maturity b) Using the Fisher equation, what is the nominal interest rate if the real rate of interest is 4% and the rate of inflation is 9%?

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a To calculate the price of the bond we can use the present value formula for a bond Coupon Payment ... blur-text-image

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