The $$1,000$ par value bonds issued by a firm pay an annual coupon of $9\mathrm{.}20\%.$ The market rate for similar bonds is $7\mathrm{.}28\%.$ The annual rate of inflation is $1\mathrm{.}98\%.$ What

is the expected real rate of return on the bonds?

Multiple Choice

$9\mathrm{.}40\%$

$9\mathrm{.}51\%$

$5\mathrm{.}20\%$

$11\mathrm{.}36\%$

$7\mathrm{.}08\%$