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The one-year government bonds of a developing economy have a yield of 25.6% and inflation is expected to be 19.6% over the next year. If

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The one-year government bonds of a developing economy have a yield of 25.6% and inflation is expected to be 19.6% over the next year. If an investor buys a bond and holds it to maturity, what is her real return? Assume inflation is as expected. Please use the theoretically correct approach. 6.00% 5.02% 31.90% 0 -4.78% 22.60%

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