Northern Warehouses wants to raise $11.4 million to expand its business. To accomplish this, it plans to sell 40-year,

The yield to maturity on a bond is currently 8.46 percent. The real rate of return is 3.22 percent. What is the rate of inflation?    A.  5.08 percent B.  5.64 percent C.  6.24 percent D.  6.53 percent E.  6.71 percent

108.

A zero coupon bond with a face value of $1,000 is issued with an initial price of $212.56. The bond matures in 22 years. What is the implicit interest, in dollars, for the first year of the bond's life?    A.  $14.72 B.  $15.50 C.  $15.90 D.  $16.63 E.  $16.89   Implicit interest = $228.06 - $212.56 = $15.50

109.

Northern Warehouses wants to raise $11.4 million to expand its business. To accomplish this, it plans to sell 40-year, $1,000 face value, zero-coupon bonds. The bonds will be priced to yield 8.75 percent. What is the minimum number of bonds it must sell to raise the $11.4 million it needs?    A.  210,411 B.  239,800 C.  254,907 D.  326,029 E.  350,448