Unformatted text preview: 0.1234. Correct! Correct Answer-0.0565 margin of error +/- 0.5% Question 4 0 / 2 pts One year ago, you purchased a 6-year, 9% coupon bond at a YTM of 12%. Today (one year later) you sold the bond at a YTM of 11%. What was your percentage capital gain on this investment? Input your answer in decimals, not percent. Answer to 4 decimal places, for example 0.1234. You Answered Correct Answer 0.0564 margin of error +/- 0.5% Question 5 2 / 2 pts You purchase a 1-year, 4% coupon TIPS when rates are 13%. Over the year, inflation is 4%. You keep the bond until it matures in 1-year. What is your 1-year rate of return on this investment (the nominal rate of return)? Answer in decimals, not percent, and round to 4 decimals. For example 0.1234. Correct! Correct Answer 0.1752 margin of error +/- 0.05%...
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- Fall '08
- Quiz, Fin300, Spr 19, Glenn Williams