Dma corporation has bonds on the market with 145 years to


DMA Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1,000, and a current price of $965. The bonds make semiannual payments. What must the coupon rate be on these bonds? If Treasury bills are currently paying 5.1 percent and the inflation rate is 2.2 percent, what is the approximate real rate of interest? The exact real rate?

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Financial Management: Dma corporation has bonds on the market with 145 years to
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