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Blanc Plum Linens has bonds outstanding that pay a 2.5 percent semiannual coupon, have a 3.27 percent yield to maturity, and a face value of

Blanc Plum Linens has bonds outstanding that pay a 2.5 percent semiannual coupon, have a 3.27 percent yield to maturity, and a face value of $1,000. The current rate of inflation is 2.12 percent. What is the real rate of return on these bonds? 0.86 percent 0.90 percent 1.04 percent 1.13 percent 1.19 percent

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