1. An investment had a nominal return of 10.6 percent last year. The inflation rate was 2.2 percent. What was the real return on the investment?
13.03%
8.22%
10.31%
9.13%
7.59%
2. Footsteps Co. has a bond outstanding with a coupon rate of 6.1 percent and annual payments. The bond currently sells for $976.23, matures in 25 years, and has a par value of $1,000. What is the YTM of the bond?
5.24%
6.25%
6.29%
6.10%
5.66%