Question
Say you own an asset that had a total return last year of 11.8 percent. If the inflation rate last year was 7.1 percent, what
Say you own an asset that had a total return last year of 11.8 percent. If the inflation rate last year was 7.1 percent, what was your real return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Real Return:__?__%
You find a zero coupon bond with a par value of $10,000 and 21 years to maturity. The yield to maturity on this bond is 4.3 percent. Assume semiannual compounding periods. |
What is the price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price:__?__ |
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