A bond issued by ford on may 15 1997 is scheduled to mature, Financial Management

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A bond issued by ford on may 15 1997 is scheduled to mature

1. If the rate of inflation is 4.9 % what nominal interest rate is necessary for you to earn a 2% real interest rate on your? investment?

2. A bond issued by Ford on May 15, 1997 is scheduled to mature on May 15, 2097. If today is November 16, 2002, what is this bond’s time to maturity? (Use 365 days a year.) Time to maturity 80 years and 6 months.

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Financial Management: A bond issued by ford on may 15 1997 is scheduled to mature

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Financial Management: A bond issued by ford on may 15 1997 is scheduled to mature

Reference No:- TGS02800328

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