Question $6$

A U$.$S$.$ treasury bond has $7$ years to maturity, a coupon rate of $4\mathrm{.}7\%,$ and a face value of $$1,000.$ Coupons are paid semi$-$

annually. What is the semiannual interest payment?

Enter your answer rounded to the nearest whole dollar. For example, enter $$12\mathrm{.}34$ as $12.$

Question $7$

Imagine that over the course of $7$ years your investments earned an annual return of $7\mathrm{.}5\%.$ Over the same period, the

annual rate of inflation was $6\mathrm{.}1\%.$ What was the real return on your investments over the holding period? $($Note that the

real return could be negative.$)$

Enter your answer as a decimal rounded to the fourth decimal place. For example, enter $12\mathrm{.}345\%$ as $\mathrm{.}1235.$

Question $8$

Mr$.$ X invests $$7,251$ at a $7\mathrm{.}6\%$ nominal rate for one year. If the inflation rate is $3\mathrm{.}5\%,$ what is the real value of the

investment at the end of one year?

Enter your answer rounded to the second decimal place. For example, enter $$123\mathrm{.}456$ as $123\mathrm{.}46.$