29. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, and inflation is 4 percent per year. What is the nominal yield on the bond? (A) 6 percent. (B) 8.5 percent. (C) 10 percent. (D) 12.5 percent.

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Chapter1: Making Economics Decisions
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29. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, and
inflation is 4 percent per year. What is the nominal yield on the bond?
(A) 6 рercent.
(B) 8.5 percent.
(C) 10 percent.
(D) 12.5 рercent.
30. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, and
inflation is 4 percent per year. What is the real coupon rate on the bond?
(A) 6 percent.
(B) 8.5 percent.
(C) 10 percent.
(D) 12.5 рercent.
Transcribed Image Text:29. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, and inflation is 4 percent per year. What is the nominal yield on the bond? (A) 6 рercent. (B) 8.5 percent. (C) 10 percent. (D) 12.5 рercent. 30. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, and inflation is 4 percent per year. What is the real coupon rate on the bond? (A) 6 percent. (B) 8.5 percent. (C) 10 percent. (D) 12.5 рercent.
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