Rate of Return 1. If a bond has a current yield of 6% and a rate of return of 2%, it has a capital gain or loss. 2. If a bond has a 2% rate of return and a capital loss of 4%, its current yield is ?...


Rate of Return<br>1. If a bond has a current yield of 6% and a rate<br>of return of 2%, it has a<br>capital gain or<br>loss.<br>2. If a bond has a 2% rate of return and a<br>capital loss of 4%, its current yield is<br>?<br>Real and Nominal Interest Rates<br>3. If the nominal interest rate is 4% and<br>expected inflation is -4%, the real interest<br>rate is<br>?<br>4. If the nominal interest rate is 6%, the<br>expected rate of inflation is 4% and the<br>actual rate of inflation is 6%, the ex post real<br>interest rate is<br>?<br>

Extracted text: Rate of Return 1. If a bond has a current yield of 6% and a rate of return of 2%, it has a capital gain or loss. 2. If a bond has a 2% rate of return and a capital loss of 4%, its current yield is ? Real and Nominal Interest Rates 3. If the nominal interest rate is 4% and expected inflation is -4%, the real interest rate is ? 4. If the nominal interest rate is 6%, the expected rate of inflation is 4% and the actual rate of inflation is 6%, the ex post real interest rate is ?

Jun 11, 2022
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