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Question 1) Last year, you earned a rate of return of 11.75 percent on your bond investments. During that time, the inflation rate was 2.1

Question 1)

Last year, you earned a rate of return of 11.75 percent on your bond investments. During that time, the inflation rate was 2.1 percent. What was your real rate of return?

Question 2)

You just purchased a 6% semiannual coupon bond for $940. The bond matures in 7 years. Calculate the bond's YTM.

Question 3)

Suppose one year later the bond is priced at $1,005. Now what is the YTM?

Question 4)

If you sell the bond at this new price, what is your overall return?

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