Interest Rates and Bond Valuation a) Using the following information: $1,000 par value, 11% yield, coupon payment of $100 annually, 10 years to maturity: 

1) Calculate the price of the bond?

2) If the coupon rate is 8%, Calculate the yield to maturity b) Using the Fisher equation, what is the nominal interest rate if the real rate of interest is 4% and the rate of inflation is 9%?

Answer rating: 100% (QA)

a To calculate the price of the bond we can use the present value formula for a bond Coupon Payment ... View the full answer