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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 $80.02. A real-estate property is expected
Consider these long-term investment data: The price of a 10-year $100 par value zero coupon inflation- indexed bond is $80.02. A real-estate property is expected to yield 2% per quarter (nominal) with a SD of the (effective) quarterly rate of 10%. Compute the annual rate on the real (i.e., inflation-indexed) bond. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Real bond annual rate %
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