What was the real return on the investment

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1. An investment had a nominal return of 10.6 percent last year. The inflation rate was 2.2 percent. What was the real return on the investment?

13.03%

8.22%

10.31%

9.13%

7.59%

2. Footsteps Co. has a bond outstanding with a coupon rate of 6.1 percent and annual payments. The bond currently sells for $976.23, matures in 25 years, and has a par value of $1,000. What is the YTM of the bond?

5.24%

6.25%

6.29%

6.10%

5.66%

Reference no: EM131991948

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