During a period of severe inflation, a bond offered a nominal HPR of 87% per year. The Inflation rate was 79% per year. What was the real HPR on the bond over the year?

The outstanding bonds of Winter Tires Inc. provide a real rate of return of 4.2 percent. If the current rate of inflation is 5.8 percent, what is the actual nominal rate of return on these bonds?

A bond that matures in 1212 years has a $1 comma 0001,000 par value. The annual coupon interest rate is 1414 percent and the market's required yield to maturity on a comparable-risk bond is 1515 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?

Suppose you can observe that 1-year bond interest rate is 4%, 2-year bond interest rate is 8%, and 3-year bond interest rate is 10% at time t. It is also known that the term premium on a 2-year bond is 1% and the term premium on a 3-year bond is 1.5%. a) What are the market's expected 1-year bond interest rates for the next two years from time t? b) How to interpret those expected short-term interest rates? (what would be the "possible" economic meanings in the expected short- term interest rates?) Discuss as least two "candidates" to explain them.

The real risk-free rate of interest, r*, is 4 percent, and it is expected to remain constant over time.  Inflation is expected to be  2 percent per year for the next three years, after which time inflation is expected to remain at a constant rate of 5 percent per year.  The maturity risk premium is equal to 0.1(t - 1)%, where t = the bond’s maturity.  What is the yield on a 10-year Treasury bond?

What is the purchase price for a bond that is paying 6 percent annual coupon rate in Semi-annual payments if its Yield to Maturity is 10 % and it has 10 years and 10 months from its purchase date until its maturity? What is the accrued interest rate? Assume the bond is traded in a year of 366 days when calculating the accrued interest.

A 5-year government bond has a face value of £1,000 and an annual nominal couponrate of 8%. Assume that the relevant nominal market interest rate (annualized) is equalto 10%. The coupon payments are made quarterly.(a) Calculate the present value of the bond  and the effective market interest rate.

A seven-year government bond makes annual coupon payments of 5% and offers an interest rate (ie. YTM) of 3% annually compounded. Suppose that one year later the bond still yields 3%.    a) What is the bond price in year 0?  b) What is the bond price in year 1?  c) What return has the bondholder earned over the first year?

Suppose a U.S. government bond pays $2,155.40 in 5 years at 6% interest. Calculate the present value of the bond.

Suppose a bond has a price today of $800, a coupon rate of 4.95%, and six years remaining to maturity. If interest is paid semi-annually, what is this bond's yield to maturity?