finance ch 10

# Finance ch 10 - inflation 6 Divide the annual interest rate by two Multiply the number of years by two Divide the annual yield to maturity by two 1

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Evan D’Agostino 106003714 November 27, 2007 3. The market return Market capitalization Value 4. The bond's maturity date refers to a future date on which the issuer pays the principal to the investor. Bond maturities usually range from one day up to 30 years or even more. If inflations expectations increase then people are not going to want to pay the future price because the dollar amount won’t be the same due to inflation. In the case of bond prices, they would fall if there was a high expectation of

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Unformatted text preview: inflation. 6. Divide the annual interest rate by two. Multiply the number of years by two. Divide the annual yield to maturity by two. 1. A. \$1,344.10 B. \$1,098.18 C. \$775.92 2. A. \$1,084 B. \$926.70 C. \$756.12 3. A. \$2,718.57 B. \$857.35 4. .17% 5. A. \$1,372.27 B. \$1,273.24 C. \$1,025.04 22. A. 100 B. 133.3 23. A. 100 B. 41.67 24. 8.91%...
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## This note was uploaded on 05/17/2008 for the course BUS 330 taught by Professor Nugent during the Spring '08 term at SUNY Stony Brook.

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Finance ch 10 - inflation 6 Divide the annual interest rate by two Multiply the number of years by two Divide the annual yield to maturity by two 1

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