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Part 2. Application problems Directions: Read analyze and apply the best method to calculate the valuation of stocks and bonds. The real return and inflation

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Part 2. Application problems Directions: Read analyze and apply the best method to calculate the valuation of stocks and bonds. The real return and inflation rate for a number of securities are given below: Real return Inflation A 10% 7% B 8% 6% C 12% 8% D 9% 7% E 8% 7% 1-5 Find the nominal rate that is applicable to A,B,C,D,E securities. (1 mark each correct answer x 5 items) 6-10.Find the approximate rate for A, B, C, D, E, securities. (1 mark each correct answer x 5 items)

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