Question
Your Albanian treasury bondpaysinterest annually and has a yield to maturity of 7.75 percent. The annual inflation rateis 4 percent. What is the (annual) real
Your Albanian treasury bondpaysinterestannuallyand has a yield to maturity of 7.75 percent. The annual inflation rateis 4 percent. What is the (annual) real rate of return on this bond?
A) 1.04%
B) 11.75%
C) 3.61%
D) 1.94%
E) 4.00%
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
