Question
Consider these long-term investment data: The price of a 10-year $100 par zero coupon inflation-indexed bond is $80.65. A real-estate property is expected to yield
| Consider these long-term investment data: |
| The price of a 10-year $100 par zero coupon inflation-indexed bond is $80.65. | |
| A real-estate property is expected to yield 2% per quarter (nominal) with a SD of the (effective) quarterly rate of 10%. |
| a. | Compute the annual rate on the real bond. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
|
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Offshore Finance And State Power
Authors: Andrea Binder
1st Edition
0192870122, 978-0192870124
