Question
Consider these long-term investment data: The price of a 10-year $100 par zero coupon inflation-indexed bond is $88.36. 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 $88.36. | |
| 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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Trade Union Finance
Authors: Marick F. Masters, Raymond Gibney
1st Edition
1032371382, 978-1032371382
