Consider these long-term investment data:â¢The price of a 10-year $100 par zero coupon inflation-indexed bond is $80.55...
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Consider these long-term investment data: |
⢠| The price of a 10-year $100 par zero coupon inflation-indexed bond is $80.55. |
⢠| A real-estate property is expected to yield 2% per quarter (nominal) with a SD of the (effective) quarterly rate of 10%. |
a. | Compute the annual rate on the real bond. (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
Annual rate | % |