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Please answer with excel using functions when possible. A bond has 10 years until maturity, a coupon rate of 8.4%, and sells for $1,160. Interest
Please answer with excel using functions when possible.
A bond has 10 years until maturity, a coupon rate of 8.4%, and sells for $1,160. Interest is paid annually. (Assume a face value of $1,000.) a. If the bond has a yield to maturity of 9.6%1 year from now, what will its price be at that time? Note: Do not round intermediate calculations. Round your answer to nearest whole number. b. What will be the rate of return on the bond? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign. c. If the inflation rate during the year is 3%, what is the real rate of return on the bond? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus signStep by Step Solution
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