Question
Over the past year (from one year ago to today), the inflation rate was 1.18% the risk-free rate was 5.75% and the real rate of
Over the past year (from one year ago to today), the inflation rate was 1.18% the risk-free rate was 5.75% and the real rate of return for a bond was 9.65%. The bond is currently priced at $954.00 pays annual coupons of $110.00 and just made a coupon payment. What was the price of the bond one year ago?
| $922.01 (plus or minus $1.00) | ||
| $995.04 (plus or minus $1.00) | ||
| $959.04 (plus or minus $1.00) | ||
| $970.36 (plus or minus $1.00) | ||
| None of the above is within $1.00 of the correct answer |
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
6th Edition
1264101589, 9781264101580
