HW17-5) Over the past year (from 1 year ago to today), the inflation rate...
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Finance
HW17-5)
Over the past year (from 1 year ago to today), the inflation rate was 3.18 percent, the risk-free rate was 5.83 percent, and the real rate of return for a bond was 8.11 percent. The bond was priced at 1,296.7 dollars one year ago and 1,309.63 dollars two years ago, pays annual coupons of 40.43 dollars, and just made a coupon payment. What is the price of the bond today?
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