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Question 1 Question #1 to #2 use the following setup: The price of a one-year zero coupon bond is $980.50 today. Its face value is
Question 1 Question #1 to #2 use the following setup: The price of a one-year zero coupon bond is $980.50 today. Its face value is $1000. What is the (nominal) rate of return if you hold the bond from now until its maturity? Write your answer as of APR in the unit of percentage. % Question 2 Suppose the inflation rate is 2.2%, what is the real rate of return from the bond? Use your answer from #1 to solve this question. O A.2.52% .-0.21% O C.4.18% O D3.85%
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