Suppose Treasury bills are currently paying a nominal rate of 6% and the inflation rate is 2.6%, what is approximate real rate of return? 

TLM Corporation needs to raise funds to finance a plant expansion, and it has decided to issue 25-year zero-coupon bonds to raise the money. The required return on the bonds will be 7%. What will these bonds sell for at issuance?

ONAS Corporation issued 30-year bonds two years ago at a coupon rate of 7.1%. The bonds make semi-annual payments. The bonds currently sell for $1,050. What is the YTM on these bonds?

Answer rating: 100% (QA)

1 Approximate real rate of return The real rate of return is the nominal rate of return minus the in... View the full answer