Treasury bills are currently paying 5 percent and the


A) Sqeekers Co. issued 12-year bonds a year ago at a coupon rate of 7.2 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 5.5 percent, what is the current bond price?

Current Bond Price?

B) Treasury bills are currently paying 5 percent and the inflation rate is 3.2 percent.

What is the approximate real rate of interest?

Approximate real rate?

What is the exact real rate?

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Financial Management: Treasury bills are currently paying 5 percent and the
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