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A 30-year bond has an annualized rate of return of 5%. Assuming inflation remains at 2.5%, what would be the real rate of return over
A 30-year bond has an annualized rate of return of 5%. Assuming inflation remains at 2.5%, what would be the real rate of return over 30 years? A: Over 30 years, the real rate of return is 1.06, or 106%.
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Introductory Econometrics For Finance
Authors: Chris Brooks
2nd Edition
052169468X, 9780521694681
