Business
Business, 01.12.2021 17:50, joelpimentel

What real rate of return is earned by a one-year investor in a bond that was purchased for $1,000, has an 8% coupon, and was sold for $960 when the inflation rate was 6%

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Bonds often pay a coupon twice a year. for the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. using the values of cash flows and number of periods, the valuation model is adjusted accordingly. assume that a $1,000,000 par value, semiannual coupon us treasury note with three years to maturity has a coupon rate of 3%. the yield to maturity (ytm) of the bond is 7.70%. using this information and ignoring the other costs involved, calculate the value of the treasury note:
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What real rate of return is earned by a one-year investor in a bond that was purchased for $1,000, h...

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