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A bond par value is $2,000 and the coupon rate is 4.9 percent. The bond price was $1,945.91 at the beginning of the year and
A bond par value is $2,000 and the coupon rate is 4.9 percent. The bond price was $1,945.91 at the beginning of the year and $1,978.64 at the end of the year. The inflation rate for the year was 2.7 percent. What was the bond's real return for the year? A. 4.95% B. 4.17% C. 3.91% D. 6.72% E. 3.42%
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