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In: Finance

Joe Carter is looking to invest in a four-year bond that pays semiannual coupons at a...

Joe Carter is looking to invest in a four-year bond that pays semiannual coupons at a coupon rate of 5.6 percent and has a par value of $1,000. If these bonds have a market price of $1,035, what yield to maturity is being implied in the pricing? What is the current yield? What is the effective annual yield?

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A bond has a quoted price of $900. It has a face value of

$1,000, YTM of 10%, and a maturity of 10 years. Coupon is

paid every quarter. What is its coupon rate?

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You invested $100,000 in stocks last year and earned a return

of 12 percent. If the inflation rate last year was 3 percent, what

was your real return?

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