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You hold a Jones Corporation 5.5 percent coupon bond with a face value of $1,000 that sells for $990 today. You bought the bond one
You hold a Jones Corporation 5.5 percent coupon bond with a face value of $1,000 that sells for $990 today. You bought the bond one year ago for $960. If the inflation rate last year was 2.5 percent, what was your total real rate of return on this investment?
-3.80 percent | ||
5.50 percent | ||
6.20 percent | ||
7.68 percent | ||
8.85 percent |
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