Remaining Time: $37$ minutes, $40$ seconds.

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$8\mathrm{.}94\%$

$9\mathrm{.}77\%$

QUESTION $16$

A $25-$year, $$1,000$ par value bond has an $8\mathrm{.}5\%$ annual coupon. The bond currently sells for $$825.$ If its yield to maturity remains at its current rate, what will the price be $5$ years from now?

$$726\mathrm{.}60$

$$801\mathrm{.}76$

$$835\mathrm{.}17$

$$843\mathrm{.}52$

QUESTION $17$

The real risk$-$free rate is $3\mathrm{.}05\%,$ inflation is expected to be $5\mathrm{.}95\%$ this year, and the maturity risk premium is zero. What is the equilibrium $($or expected$)$ rate of return on a $1$ year Treasury bond?

$8\mathrm{.}37\%$

$8\mathrm{.}82\%$

$9\mathrm{.}00\%$

$10\mathrm{.}80\%$

QUESTION $17$

The real risk$-$free rate is $3\mathrm{.}05\%,$ inflation is expected to be $5\mathrm{.}95\%$ this year, and the maturity risk premium is zero. What is the equilibrium $($or expected$)$ rate of return on a $1$ year Treasury bond?

$8\mathrm{.}37\%$

$8\mathrm{.}82\%$

$9\mathrm{.}00\%$

$10\mathrm{.}80\%$