Finance questions....

Business & Finance
Tutor: None Selected Time limit: 1 Day

2.The real risk-free rate is 3.05%, inflation is expected to be 2.60% this year, and the maturity risk premium is zero.  Ignoring any cross-product terms, what is the equilibrium rate of return on a 1-year Treasury bond?

3.Adams Enterprises’ noncallable bonds currently sell for $1,030.  They have a 15-year maturity, an annual coupon of $85, and a par value of $1,000.  What is their yield to maturity?

Jul 12th, 2015

Thank you for the opportunity to help you with your question!

question2

answer is 5.65%


question 3

answer is 

7.10%  aproximate 

Best of luck dear ......................


Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 12th, 2015

Thank you so much, i think question 2 is correct, but the answer of question 3 will be one of these:

9.53%

 

8.15%

 

8.88%

 

8.55%

 

7.41%

Jul 12th, 2015

7.41 is correct :)

Jul 12th, 2015

okay, thank you so much

Jul 12th, 2015

you are always welcome :)

Jul 12th, 2015

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