Question: please answer all 3 A bond has a nominal interest rate of 7.7 percent and the expected inflation rate is 2.3 percent. What is the
A bond has a nominal interest rate of 7.7 percent and the expected inflation rate is 2.3 percent. What is the bond's real interest rate? Answer in percent to 2 decimal places and do not include the % sign. For example, if the return is 2.04%, you should enter 2.04 as the answer. Question 6 A zero-coupon bond with $1000 face value has 10 years to maturity. If the current bond price is $809.58, what is the yield to maturity? Answer in percent to 2 decimal places and do not include the \% sign. For example, if the return is 2.04%, you should enter 2.04 as the answer. Question 7 A company will' pay its first dividend 6 years from now, at which point it will pay annual dividends of $2.39 per share forever. If investors require a 10 percent return, what is the current stock price? Answer to the nearest cent and do not include the $ sign. For example, if the price is $100.25, you should enter 100.25 as the
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
