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Compute the current price of the bond if percent yield to maturity is 7%
The expected real interest rate.
The expected spot rate can be estimated by observing the relevant forward rate. E.g. expected spot rate in 90-days can be estimated by observing the 90-day forward rate.
The expected inflation rate is 11.51%
The expected rate of return is simply the average rate of return. The standard deviation does not directly affect the expected rate of return, only the reliability of that estimate.
1
expected rate of return
it will increase the price of bonds
An increase in a firm's expected growth rate would normally cause its required rate of return to
A portfolio manager who examines the expected rate of return & risk statistics for many bonds & stocks may select assets worthy of investment by using a dominance principle
11.84%
Enclosed is a list of current rates on Government bonds. http://investment-income.net/rates/government-bonds-rate-page