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Over the past year (from one year ago to today), the inflation rate was 1.38% the risk-free rate was 5.77% and the real rate of
Over the past year (from one year ago to today), the inflation rate was 1.38% the risk-free rate was 5.77% and the real rate of return for a bond was 10.76%. The bond is currently priced at $902.00 pays annual coupons of $107.00 and just made a coupon payment. What was the price of the bond one year ago?
$941.67 (plus or minus $1.00) | ||
$865.87 (plus or minus $1.00) | ||
$898.58 (plus or minus $1.00) | ||
$910.98 (plus or minus $1.00) | ||
None of the above is within $1.00 of the correct answer |
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