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question b only (b). If the inflation rate is 5.5%, what is Jane's real return? [1 mark] (a). Jane bought a 8-year bond with a

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(b). If the inflation rate is 5.5%, what is Jane's real return? [1 mark] (a). Jane bought a 8-year bond with a face value $1000, coupon rate 9%, paying at end of each year. She paid $950 for it. After two years she sold it after receiving two coupon payments. If she received a rate of return equal to 10%, what price did she sell the bond for? [1.5 marks] (b). If the inflation rate is 5.5%, what is Jane's real retum? [1 mark]

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