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There is 4 questions here The real rate of interest is 3% and the expected rate of inflation is 1.94%. What is the nominal rate
There is 4 questions here
The real rate of interest is 3% and the expected rate of inflation is 1.94%. What is the nominal rate of interest? Express your answer in percentage form. Consider the information on various bonds in the table and answer the question that follows. J Bond Issuer Rating Coupon Yield Maturity A U.S. Government AAA 7% 7.42% 10 years B U.S. Government AAA 6% 7.90% 30 years Texas State Highway Bonds AAA 7% 7.77% 10 years Bank of America A 8% 7.87% 5 years The yield on the Texas State Highway Bond exceeds the yield on a 10-year U.S. Government T-Note because of: credit or default risk O liquidity risk inflation risk O maturity risk If the nominal rate of interest is 7.12% and the real rate of interest is 3%, what is the expected rate of inflation? Express your answer in percentage form. % Which of the following is not a fixed feature of a bond? O the maturity date the price of the bond O the coupon O the coupon datesStep by Step Solution
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