Question: Answer Please the Questions below Urgent - Thumbs up - You currently have $2,500 invested in a discount bond at an annual yield of i

Answer Please the Questions below Urgent - Thumbs up

- You currently have $2,500 invested in a discount bond at an annual yield of i = 8%. If the face value of this bond is $3,500, what is the maturity of this bond?

- Suppose the Treasury issues an inflation protected $1000 par value TIPS bond with a maturity of 5 years and an annual yield of 2 percent. If the 5-year regular Treasury note has an annual yield of 4 percent, what the markets expected inflation rate over the next 5 years?

- The Nimnim Company just paid an annual dividend of $1.12. If you expect a constant growth rate of 4% and have a required rate of return of 13%, what is the current stock price according to the constant growth dividend model?

- Suppose the FED imposes a minimum holding period of 5 years for stock purchases in order to prevent a stock market bubble. Is this desirable? What would be the major drawback of this policy?

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