Question: A 2 0 - year bond with a principal value of $ 1 , 0 0 0 , 0 0 0 was issued 5 years

A 20-year bond with a principal value of $1,000,000 was issued 5 years ago, has a coupon rate of 10%
with interest paid semi-annually and is priced at $100. What is the nominal interest rate on the bond
assuming an inflation rate of 3%?
5%
10%
7%
8%
A 20-year bond with a principal value of $1,000,000 was issued

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