Page Enterprises has bonds on the market making annual payments, with twelve yea

Question

Page Enterprises has bonds on the market making annual payments, with twelve years to maturity, and selling for $960. At this price, the bonds yield 6.50 percent. What must the coupon rate be on the bonds? (Round your answer to 2 decimal places. (e.g., 32.16 >> Coupon rate % references ebook & resources Page Enterprises has bonds on the market making annual payments, with twelve years to maturity, and selling for $960. At this price, the bonds yield 6.50 percent. What must the coupon rate be on the bonds? (Round your answer to 2 decimal places. (e.g., 32.16 >> Coupon rate % references ebook & resources The outstanding bonds of Roy Thomas, Inc. provide a real rate of return of 2,5 percent. The current rate of inflation is 1.6 percent. What is the nominal rate of return on these bonds? 4.10 percent 4.14 percent 1.04 percent 1.01 percent .90 percent Page Enterprises has bonds on the market making annual payments, with twelve years to maturity, and selling for $960. At this price, the bonds yield 6.50 percent. What must the coupon rate be on the bonds? (Round your answer to 2 decimal places. (e.g., 32.16 >> Coupon rate % references ebook & resources The outstanding bonds of Roy Thomas, Inc. provide a real rate of return of 2,5 percent. The current rate of inflation is 1.6 percent. What is the nominal rate of return on these bonds? 4.10 percent 4.14 percent 1.04 percent 1.01 percent .90 percent A bond that pays interest annually yields a rate of return of 5.25 percent. The inflation rate for the same period is 2 percent. What is the real rate of return on this bond? 1.03 percent 2.63 percent 2.00 percent 3.19 percent 7.25 percent

Explanation / Answer

                                   10.00 Rate of return 5.25% Inflation rate 2% Real Rate(Nominal - Inflation rate) 3.25% Ans is d 3.19% Approx 9 Real rate of return 2.50% Inflation rate 1.6% Nominal Rate(Real +Inflation rate) 4.10% Ans is a 4.1% Approx 8 Price of Bond 960 Bond Yields 6.50% Coupon Payment                                                                            62.40 Coupon Rate(62.40/1000) 6.24%

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