### What is the approximate real rate of interest

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Calculating Real Rates of Return If Treasury bills are currently paying 4.7 percent and the inflation rate is 2.3 percent, what is the approximate real rate of interest? The exact real rate?

#### What is the percentage change in the price of these bonds

what is the percentage change in the price of these bonds? What if interest rates suddenly fall by 2 percent instead? What does this problem tell you about the interest rate

#### What is the current yield on the bonds

Bond Yields Mega Software has 7.4 percent coupon bonds on the market with 9 years to maturity. The bonds make semiannual payments and currently sell for 105 percent of par.

#### What is the clean price of the bond

Accrued Interest You purchase a bond with an invoice price of \$850. The bond has a coupon rate of 7.6 percent, and there are 2 months to the next semiannual coupon date. Wha

#### What is the invoice price

Accrued Interest You purchase a bond with a coupon rate of 9.9 percent and a clean price of \$1,060. If the next semiannual coupon payment is due in four months, what is the

#### How many years do these bonds have left until they mature

Finding the Bond Maturity Cavo Corp. has 7 percent coupon bonds making annual payments with a YTM of 8.34 percent. The current yield on these bonds is 8.13 percent. How many

#### What is the yield to maturity of the bond

Using Bond Quotes Suppose the following bond quote for IOU Corporation appears in the financial page of today's newspaper. Assume the bond has a face value of \$1,000 and the

#### What is the annual amount that paul can spend

What is the annual amount that Paul can spend while on his world tour if he will have no money left in the bank when he dies? Assume Paul has a remaining life of 25 years an

#### What is the general shape of the yield curve

What does this imply about the expected future inflation? Now graph the yield curve for AAA, AA, and A rated corporate bonds. Is the corporate yield curve the same shape as