A $1,000 face value bond has a coupon rate of 8 percent, a market price...
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Finance
A $1,000 face value bond has a coupon rate of 8 percent, a market price of $1040.40, and 12 years left to maturity. Interest is paid semiannually. If the inflation rate is 3.5 percent, what is the yield to maturity when expressed in real terms?
a. 2.12
b.none of the above
c.7.46
d.5.56
e. 3.85
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