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Over the past year (from 1 year ago to today), the inflation rate was 5.46 percent, the risk-free rate was 7.63 percent, and the real
Over the past year (from 1 year ago to today), the inflation rate was 5.46 percent, the risk-free rate was 7.63 percent, and the real rate of return for a bond was 9.47 percent. The bond was priced at 1,230.45 dollars one year ago and 1,257.69 dollars two years ago, pays annual coupons of 64.96 dollars, and just made a coupon payment. What is the price of the bond today?
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