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1-If the current inflation rate is 4.2% and you are earning a real rate of return on an investment of 3.8% then the nominal rate on this investment is closest to: 3.8% 4.2% 8.0% 8.2% 2-If an investment providing a nominal return of 12.25% only offers a real rate of return of 5.70% then the inflation rate is closest to: 5.70% 6.20% 6.55% 12.25 3-Suppose a five- year bond with a 7% coupon rate and semiannual compounding is trading for a price of $951.58. Expressed as an APR with semiannual compounding this bonds yield to maturity (YTM) is closest to: 7.0% 7.5% 7.8% 8.2% 4- Use the following information to answer the question(s) below. A default-free security has an annual coupon rate of 3.25% and sells for par. This bond will mature in: 1 year 2 years 3 years 4 years

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