Treasury bills are currently paying 4.6 percent and the inflation rate is 1.9 percent. What is the real rate of interest?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 10P
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9. Treasury bills are currently paying 4.6 percent and the inflation rate is 1.9 percent. What is the real rate of interest? 


10. Williams Software has 6.4 percent coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and currently sell for 106.32 percent of par. What are the current yield, YTM, and the effective annual yield?

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