Question: Problem #2 - Interest Rates and Bond Valuation a) Using the following information: $1,000 par value, 11% yield, coupon payment of $100 annually, 10 years

$Problem \#2 - Interest Rates and Bond Valuation a) Using the$

Problem \#2 - Interest Rates and Bond Valuation a) Using the following information: $1,000 par value, 11% yield, coupon payment of $100 annually, 10 years to maturity: 1) Calculate the price of the bond 2) If the coupon rate is 8%, calculate the yield to maturity b) Using the Fisher equation, what is the nominal interest rate if the real rate of interest is 4% and the rate of inflation is 9%

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