Question: 5 Question 4 (5 points) You learned that XYZ, Inc. has a bond with $1,000 face value. The bond carries a 7% coupon, paid semiannually,

 5 Question 4 (5 points) You learned that XYZ, Inc. has

5 Question 4 (5 points) You learned that XYZ, Inc. has a bond with $1,000 face value. The bond carries a 7% coupon, paid semiannually, and matures in 7 years. What is the fair market value of the bond if the yield to maturity is only 7%? (Round your answer to the nearest hundredth; two decimal places) Your Answer: Answer Question 5 (5 points) In a certain year, if your return on investment is 6.00% and the inflation rate during that same year is 1.20%, what is your real rate of return? (Use two decimal places when solving this problem) Your

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