2024 – 1 If the current inflation rate is 4 2 and you are earning a real rate of return on

1-If the current inflation rate is 4.2% and you are earning a real rate of return on an investment of 3.8%, then the nominal rate on this investment is closest to:
 3.8%
 4.2%
 8.0%
 8.2%

2-If an investment providing a nominal return of 12.25% only offers a real rate of return of 5.70%, then the inflation rate is closest to:
5.70%
6.20%
6.55%
12.25

3-Suppose a five- year bond with a 7% coupon rate and semiannual compounding is trading for a price of $951.58. Expressed as an APR with semiannual compounding, this bonds yield to maturity (YTM) is closest to:
7.0%
7.5%
7.8%
8.2%

4- Use the following information to answer the question(s) below. A default-free security has an annual coupon rate of 3.25% and sells for par. This bond will mature in:
1 year
2 years
3 years
4 years