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Question 1 A bond has a real return of 3.8 percent and the expected inflation rate is 1.5 percent. What is the bond's nominal return?
Question 1 A bond has a real return of 3.8 percent and the expected inflation rate is 1.5 percent. What is the bond's nominal return? Answer in percent to 2 decimal places and do not include the % sign. For example, if the return is 2.04%, you should enter 2.04 as the answer. Question 2 An annual coupon bond has a coupon rate of 9 percent, 9 years to maturity, a par value of $1000, and a yield to maturity of 10 percent. What is the bond price? Answer to the nearest cent and do not include the $ sign. For example, if the price is $100.25, you should enter 100.25 as the
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