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Consider these long-term investment data: . The price of a 10-year $100 par zero coupon inflation-indexed bond is $89.99. . A real estate property is

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Consider these long-term investment data: . The price of a 10-year $100 par zero coupon inflation-indexed bond is $89.99. . 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.) Real bond annual rate % Problem 5-13 During a period of severe inflation, a bond offered a nominal HPR of 75% per year. The inflation rate was 66% per year. a. What was the real HPR on the bond over the year? (Round your answer to 2 decimal places.) Real HPR % b. Find the approximation real inom - i. Approximation %

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