(Answered) A you are awarded a 10 pay raise inflation for the upcoming

Finance

a) You are awarded a 10% pay raise. Inflation for the upcoming year is 3.9%. What is your real pay raise? Answer in percent and round to two decimal places.

b) According to the yield curve, the one-year rate is 4% and the two-year rate is 10%. A two-year coupon bond pays $50 in one year and $1050 in two years. Calculate the present value of this bond. Round to the penny.

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