Bryceton, Inc. has bonds on the market with 13 years to maturity, a yield-to-maturity of 9.2 percent

Bryceton, Inc. has bonds on the market with 13 years to maturity, a yield-to-maturity of 9.2 percent, and a current price of $802.30. The bonds make semiannual payments. What is the coupon rate?    A.  6.56 percent B.  7.00 percent C.  7.25 percent D.  7.40 percent E.  7.65 percent   Coupon rate = ($32.81 × 2)/$1,000 = 6.56 percent

117.	Suppose the real rate is 9.5 percent and the inflation rate is 1.8 percent. What rate would you expect to see on a Treasury bill?    A.  9.50 percent B.  11.30 percent C.  11.47 percent D.  11.56 percent E.  11.60 percent (1 + R) = (1 + 0.095) × (1 + 0.018); R = 11.47 percent

118.

An investment offers a 10.5 percent total return over the coming year. Sam Bernanke thinks the total real return on this investment will be only 6.2 percent. What does Sam believe the inflation rate will be for the next year?    A.  5.60 percent B.  5.67 percent C.  4.05 percent D.  6.00 percent E.  6.21 percent (1 + 0.105) = (1 + 0.062) × (1 + h); h = 4.05 percent