Question
Getty Markets has bonds outstanding that pay a 5 percent semiannual coupon, have a 6.28 percent yield to maturity, and a face value of $1,000.
Getty Markets has bonds outstanding that pay a 5 percent semiannual coupon, have a 6.28 percent yield to maturity, and a face value of $1,000. The current rate of inflation is 4.1 percent. What is the real rate of return on these bonds?
The real rate of return on the bond is
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Fundamentals of corporate finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
9th edition
978-0077459451, 77459458, 978-1259027628, 1259027627, 978-0073382395
