Explain which information you would need to take into consideration when deciding to receive $5,000 today or $5,500 one year from today.

The rate of return on a bond will not necessarily equal the interest rate on that bond. Explain

What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $1,200 next year?

In which of the following situations would you prefer to be the borrower? Explain

The interest rate is 9 percent and the expected

inflation rate is 7 percent.

The interest rate is 4 percent and the expected i

nflation rate is 1 percent.

The interest rate is 13 percent and the expected

inflation rate is 15 percent.

The interest rate is 25 percent and the expected

inflation rate is 50 percent.