Question: A. What elements determine what the yield to maturity will be for a bond? (3 points) B. Given the anticipated rate of inflation (i) of
A. What elements determine what the yield to maturity will be for a bond? (3 points) B. Given the anticipated rate of inflation (i) of 6.3% and the real rate of interest (R) of 4.7%, find the nominal rate of interest ( r).(6 points) C. If provided the nominal rate of interest ( r ) of 14.2% and the anticipated rate of inflation (i) of 5.5%, what is the real rate of interest (R) ? (6 points)
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