Hi could someone please help me with this review question? Could you show the answer as well as the steps to get
Hi could someone please help me with this review question? Could you show the answer as well as the steps to get
it. Thank you!
7. A bond is currently selling at 1.15 on its par value of $1,000. This bond has a maturity of 15 years and a coupon rate of 5%, payable semi-annually. If the inflation rate is 3%, what is the real yield on this bond? (4 marks)
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