Question
Consider these long-term investment data: The price of a 10-year $100 par zero coupon inflation-indexed bond is $80.55. 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 $80.55. | |
| 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.) |
| Annual rate | % |
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
17th Edition
1119561175, 978-1119561170
