Question: 9. (1pt) Using the Fisher Approximation formula, if the real rate was 4N for a particular bond and inflation expectations were 8%, what would the
9. (1pt) Using the Fisher Approximation formula, if the "real rate" was 4N for a particular bond and inflation expectations were 8%, what would the YTM rate be? a) 4% b) 12% this is also called the NOMINAL RATE c) You would need to know the Treasury Bill rate. d) 8% 10. (1pt) You are considering investing in a $1,000 face value bond from UPS, Inc. that is currently priced at $1,015.46 and pays a 7% coupon semi-annually. The bond will mature in 15 years. What would your required return need to be if this bond was going to be an acceptable investment? (Fill in the table) 11. (1pt) Jacksonville Ski Slopes, Inc. has an outstanding $1,000 face value bond that is currently priced at $1,205,85, has 5 years left to maturity, and has a 9% YTM. What is the coupon payment if the bond makes annual payments? 12. (1pt) If this was the current Treasury Yield Curve sloping up and to the right, which bond would most likely have a higher yield? a. 5 year bond would have a higher yield b. 30 year bond would have a higher yield
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