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Over the past year (from 1 year ago to today), the inflation rate was 6.63 percent, the risk-free rate was 8.31 percent, and the real
Over the past year (from 1 year ago to today), the inflation rate was 6.63 percent, the risk-free rate was 8.31 percent, and the real rate of return for a bond was 9.2 percent. The bond was priced at 1,124.65 dollars one year ago and 1,148.58 dollars two years ago, pays annual coupons of 47.51 dollars, and just made a coupon payment. What is the price of the bond today?
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