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Consider these long-term investment data: The price of a 10-year $100 par zero coupon inflation-indexed bond is $81.74. 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 $81.74.
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 bond. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Annual rate _____%???
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