If the nominal yield on a bond is 5.250% and the current inflation rate is...
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If the nominal yield on a bond is 5.250% and the current inflation rate is 3.900%, what is the real rate of return? Enter your answer as a number rounded to three decimal places, not in percent, e.g., if the answer is 4.252%, enter 4.252. (NB: Do not use shortcuts or approximations for your answer.)
2. Use the following information to calculate the bond's current yield. Enter your answer as a number rounded to three decimal places, not in percent, e.g., if the answer is 4.252%, enter 4.252.
Price: 106.501/ Par Value: 100.000/ Coupon Rate: 4.200% (annual pay)/ Maturity: 6 years
3. What is the yield-to-maturity (YtM) on a 5-year zero coupon bond with a price of 81.975% of par? Assume annual compounding. Enter your answer as a number to three decimal places, not in percent, e.g., if the answer is 4.252%, enter 4.252.
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