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Consider these long-term investment data: The price of a 10-year $100 par value zero-coupon inflation-indexed bond is $83.30. A real-estate property is expected to yield
Consider these long-term investment data: The price of a 10-year $100 par value zero-coupon inflation-indexed bond is $83.30. A real-estate property is expected to yield 2% per quarter (nominal) with an SD of the (effective) quarterly rate of 10%. a. Compute the annual rate of return on the real (i.e., inflation-indexed) bond. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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