Q1 On January 21 2021, the nominal rate on 10-yr Treasury bond was 1.15%. If...

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Finance

Q1 On January 21 2021, the nominal rate on 10-yr Treasury bond was 1.15%. If the expected annual inflation on the same date was 2.35%, what was the real rate on 10-yr. bond?

Q2 Today is January 1, 2021. The XYZ company generated $210 million in free cash flows in 2020. The cash flows are expected to grow 2.6% per year indefinitely. If the opportunity cost for the company is 6.50%, what is the value of the company (present value of all future cash flows) today?

Enter your answer in millions, i.e. 150,000,000 as 150.0

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