Essay
Calculate the nominal and real returns for the following corporate bond investment: Purchased for $840 one year ago, 4 percent coupon rate, sold for $894.The inflation rate was 5.0 percent during the year.Would you consider this an appropriate investment if Treasury bills had yielded 6.0 percent over the same period? Why?
Correct Answer:
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Nominal yield = 
= = 11.19%
Real yield ...View Answer
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Correct Answer:
Verified
= = 11.19%Real yield ...
View Answer
Unlock this answer now
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