Question
Please help me understand and find the answers to the following 3 questions. Thanks! The inflation rate over the past year was 3.1 percent. If
Please help me understand and find the answers to the following 3 questions. Thanks!
- The inflation rate over the past year was 3.1 percent. If an investment had a real return of 8.3 percent, what was the nominal return on the investment?
- 12.30%
- 11.66%
- 12.95%
- 4.80%
- 5.04%
2.Broke Benjamin Co. has a bond outstanding that makes semiannual payments with a coupon rate of 5.2 percent. The bond sells for $945.32 and matures in 16 years. The par value is $1,000. What is the YTM of the bond?
Multiple Choice
- 5.15%
- 5.73%
- 5.44%
- 4.29%
- 2.86%
3.Whipple Corp. just issued 340,000 bonds with a coupon rate of 6.38 percent paid semiannually that mature in 25 years. The bonds have a YTM of 6.82 percent and have a par value of $2,000. How much money was raised from the sale of the bonds? (Round your intermediate calculations to two decimal places and final answer to the nearest whole dollar amount.)
Multiple Choice
- $618.56 million
- $644.33 million
- $601.38 million
- $1,237.12 million
- $680.00 million
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