Q1: An investor buys a 5-year real return bond (par value = $1,000), which offers a coupon rate = 5%. Inflation rates for years 1-5 (inclusive) are: 3%, 6%, 5%, 4% and 2%, respectively. Calculate the nominal and real rates of return (I suggest using a chart as we did in class). Q2: A co. has 1,000,000 shares O/S, and decides to issue an additional 500,000 shares at $100- on the first day of trading, the co.'s stock jumps to $160 (based on investor enthusiasm)- what is the opportunity cost to existing investors, if the stock is initially priced at $160, rather than $100?