1. The interest rate is 8.7% p.a. effective and the rate of inflation is 1% p.a. Compute the real rate of interest 数字 % Enter a percentage correct to 2 decimal places. 2. A Zero-Coupon Bond, with face value £100, that reaches maturity in 5 years sells for £75. The inflation rate is 1% p.a. effective. What is the real yield? 数字 % Enter a percentage correct to 2 decimal places.
1. The interest rate is 8.7% p.a. effective and the rate of inflation is 1% p.a. Compute the real rate of interest 数字 % Enter a percentage correct to 2 decimal places. 2. A Zero-Coupon Bond, with face value £100, that reaches maturity in 5 years sells for £75. The inflation rate is 1% p.a. effective. What is the real yield? 数字 % Enter a percentage correct to 2 decimal places.
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 10P
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Transcribed Image Text:1. The interest rate is 8.7% p.a. effective and the rate of inflation is 1% p.a.
Compute the real rate of interest
数字
%
Enter a percentage correct to 2 decimal places.
2. A Zero-Coupon Bond, with face value £100, that reaches maturity in 5 years sells for £75. The inflation rate is 1% p.a. effective.
What is the real yield?
数字
%
Enter a percentage correct to 2 decimal places.
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