Question
Here's my question: Consider these long-term investment data: The price of a 10-year $100 par zero coupon inflation-indexed bond is $89.51. A real-estate property is
Here's my question:
| Consider these long-term investment data: |
| The price of a 10-year $100 par zero coupon inflation-indexed bond is $89.51. | |
| 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 |
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Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter
8th Canadian Edition
007133887X, 978-0071338875
