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Suppose the pure rate of interest is 1.75 percent, the expected rate of inflation is...

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Finance

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Suppose the pure rate of interest is 1.75 percent, the expected rate of inflation is 2.40 percent, and the risk premium is 4.60 percent. What is the risk-free rate of interest? Selcet one: a. 7.13 percent b. 8.98 percent fc. 6.07 percent d. 4.19 percent e. 6.43 percent Dividend yield is the annual rate at which the dividends grow. Select one: True False You are purchasing a 5-year, zero-coupon bond. The annual yield to maturity is 11.0 percent and the face value is $1,000. What is the current market price? Hint: Recall the necessary assumption about compounding. Select one: a. $585.43 b. $556.16 c. $497.62 d. $526.89 e. $643.97

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