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What is the yield to maturity on a $5,000 face-value discount bond maturing in one year that sells at $4,166? A bond has a face
What is the yield to maturity on a $5,000 face-value discount bond maturing in one year that sells at $4,166?
A bond has a face value of $800 and an 8% coupon rate, its current price is $740, and its expected to increase to $770 next year.
What is the current yield, the rate of capital gain, and expected return?
Show graphically the effects of an increase in expected inflation on nominal interest rates.
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