1. The outstanding bonds of Roy Thomas, Inc. provide a real rate of return of 2.8 percent. The current rate of inflation is 1.7 percent. What is the nominal rate of return on these bonds?

1.05 percent

1.01 percent

4.50 percent

1.10 percent

4.55 percent

2. You purchase a bond with an invoice price of $1,200. The bond has a coupon rate of 6.4 percent, and there are 2 months to the next semiannual coupon date. What is the clean price of the bond?

$1,157.43

$1,189.67

$1,178.67

$1,158.67

$1,169.33