Trần Mỹ Ngọc

31211025655
19.
20 year bond selling for $800 with a current yield of 15%
ic = C1/ Pt = 15%
=> C1 = 0.15 x 800 = 120
C/(1+i) + C/ (1+i)2 + .... + C/(1+i)20 + F/(1+i) = 800
=> ic = 0.1
1 year bond selling for $800 with a current yield of 5%
ic = C/ Pt = 5%
=> C2 = 0.05 x 800 = 40
C/(1+i) + F/(1+i) = 800
=> ic = 0.3
24.
Current yield = C/P = ( 2% x100)/1100 =0.018
Rate of capital gain = (Pt+1 - Pt)/Pt = (1150-1100)/1100 = 0.045
RET = 0.063
25.
Nominal interest rate = 2% + 1% = 3%
=> real interest rate = 3% - 1.5% = 1.5%