28. What is the level of investment, I?(A) $250 billion.(B) $305 billion.(C) $345 billion.(D) $555 billion.The next two questions involve the following information.The real interest rate, r, is the nominal interest rate, i, minus inflation, 7. In formalterms, r = i- T. For example, if an investment offers an annual return of 5 percent, andinflation is 2 percent, then the real interest rate is 3 percent.29. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, andinflation is 4 percent per year. What is the nominal yield on the bond?(A) 6 percent.(В) 8.5 рercent.(C) 10 percent.(D) 12.5 percent.30. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, andinflation is 4 percent per year. What is the real coupon rate on the bond?(A) 6 percent.(В) 8.5 percent.(C) 10 percent.(D) 12.5 percent.

As per given information, Investment Amount = $ 800 Return = $ 100 So, Rate…

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 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? (А) 6 рercent. (B) 8.5 percent. (C) 10 percent. (D) 12.5 percent.

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 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? (А) 6 рercent. (B) 8.5 percent. (C) 10 percent. (D) 12.5 percent.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Question A Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line..
do fast
5 Question Let Ya,n be the present value of an n-year term continuous annuity of $1 per year for an insured aged x. Let Y be the present value of a whole life continuous annuity of $1 per year for an insured aged x. Given a constant force of interest, 8, show that: 1 бп Cov (Yz,n, Yz) = (A — e¯ðª‚„Ez (1 − Āz+n) — Ã‚±‚ñ¦Ã‚) 82 n. - -
Need help urgently Only typed answer needed Handwritten answer not allow On May 1, Emerson Fast bought 10 Manitoba Polar bonds with a coupon rate of 7.875%. The purchase price was 101.375, and the commission was $8 per bond. Manitoba Polar bonds pay interest on April 1 and October 1. a. What is the current yield of the bond? b. What is the total purchase price of the bonds? c. If Emerson sold the bonds on August 1 for 109.50, what are the proceeds from the sale?