What would you expect the nominal rate of interest

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Reference no: EM131868212

1. (Inflation and interest rates). What would you expect the nominal rate of interest to be if the real rate is 3.6% in the expected inflation rate is 7.5%?

The nominal rate of interest would be______%.

2. Bond Valuation

Nesmith Corporation's outstanding bonds have a $1,000 par value, an 8% semiannual coupon, 14 years to maturity, and an 11% YTM. What is the bond's price?

Reference no: EM131868212

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