If the nominal interest rate is 5%, and the expected rate of inflation equals 3%, then the expected real interest rate equals 8% 5% 3% 2% Question 25 (4 points) You purchase a bond that has no maturity date. The bond has an annual coupon payment of $60 and is currently selling at price of $1200. What is your rate of return? 15 Question 25 (4 points) You purchase a bond that has no maturity date. The bond has an annual coupon payment of $60 and is currently selling at price of $1200. What is your rate of return? 18 21 6.00% 24 6.67% 16.67% 5.00% 12.50%