Question 2

A bond has a yield to maturity of 6.52 percent. If the inflation rate is 2.7 percent, what is the real rate of return on the bond?

Question 6

The 7.4 percent bonds issued by Modern Kitchens pay interest semiannually, mature in eight years, and have a $1,000 face value. Currently, the bonds sell for $985. What is the yield to maturity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Question 7

You own a bond that pays $54 in interest annually. The face value is $1,000 and the current market price is $1,015.55. The bond matures in 15 years. What is the yield to maturity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Question 9

World Travel has 7.4 percent, semiannual, coupon bonds outstanding with a current market price of $1,053.46, a par value of $1,000, and a yield to maturity of 6.72 percent. How many years is it until these bonds mature? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)