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You hear from a friend that you should invest in bonds, and that Pepsi Co should be a solid (safe) investment because everyone drinks Pepsi.
You hear from a friend that you should invest in bonds, and that Pepsi Co should be a solid (safe) investment because everyone drinks Pepsi. After looking up the information, you find the following. Calculate the current price you Pepsi Co bonds would cost today. Assume that the bond is based off of the highlighted portions as seen to the right, and that the YTM is 3.27% PV INY N PMT FV ROND DATA USM24 iniaa PEPCO INC 16/26 While the bond looks good (or does it, I don't knowl, you still want to consider the impact of inflation. If you assure the bond will still be paying the same YTM as above, what would be the real rate of return if your inflation rate is 1.9%? ESCUCANICE PepsiCo Inc Issue Volume 750000,000 1.00 Nominal Rate Real Rate Inflation Rate 1.0000 1.0000 low Dale 2242016 Coupon 2050% Quotation Type Payment Type Maturity Date 2/242026 SU PO No. of Payments per Year Flogi
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