What is the exact real rate

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Reference no: EM131902000

1. DMA Corporation has bonds on the market with 19.5 years to maturity, a YTM of 8 percent, and a current price of $1,069. The bonds make semiannual payments and have a par value of $1,000.

What must the coupon rate be on these bonds?

2. Treasury bills are currently paying 8 percent and the inflation rate is 3 percent. What is the exact real rate?

Reference no: EM131902000

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