Your client is considering the purchase of a bond that is currently selling for $1148.18. The client wants to know what annual rate of return can they expect to earn on the bond. The bond has 14 years to maturity, pays a coupon rate of 2.5% (payments made semiannually), and a face value of $1000. (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34% ) Compute the current yield on a bond with a yield to maturity of 3.2%, a par value of $1000, a coupon rate of 6.4% paid semi-annually, a remaining life of 25 years? (Round to 100 th of a percent and enter as a percentage, e.g. 12.34% as 12.34 and state as an annual rate.) Answer: Last year, your nominal rate of return on an investment equaled 12.6%. The inflation rate for last year total 2.0%. What is your real rate of return? (Note: real rates of return can be positive or negative.) (Round to 100th of a percent and enter as a percentage, e.g. 12.34\% as 12.34 and state as an annual rate.) Answer Your business manager forwards the following information to you, Your businesses earned a real rate of return of 4.2% last year and inflation for the same period was 6.9%. What was your nominal rate of return? (Note: nominal rates of return can be positive or negative.) (Round to 100 th of a percent and enter as a percentage, e.g. 12.34\% as 12.34.)