Question: If we require a 6 % real return and we expect inflation to be 4 % , what should the nominal Question 1 7 :

If we require a 6% real return and we expect inflation to be 4%, what should the nominal
Question 17: rate be (approximately)?
a.10%
b.2%
c.6%
Question 18:
Finding the YTM
Consider a bond with a 10% annual coupon rate, 20 years to maturity and a par value of $1000. The current price is $1,196. What is the YTM?
a.7%
b.8%
c.9%
Question 19:
Finding the Coupon Payment
Consider a bond with 30 years to maturity and a par value of $1000. The current price is also $1,000. The YTM is 6%. What is the annual coupon rate?
a.6%
b.7%
c.8%
Question 20:
Finding the Years to Maturity
Consider a bond with 10% annual coupon rate, and a par value of $1000. The current price is also $1,511, and the YTM is 6%. What is the years to maturity?
a.20 years
b.25 years
c.30 years
Good Luck!
 If we require a 6% real return and we expect inflation

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