Question
Today, you purchased a bond for $979.21. The bond matures in 5 years, has a 6.5 percent coupon (payable semiannually), and a face value of
Today, you purchased a bond for $979.21. The bond matures in 5 years, has a 6.5 percent coupon (payable semiannually), and a face value of $1,000. If you hold the bond to maturity, what annual real rate of return will you earn if inflation remains constant at 2%?
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
