Compute the annual rate on the real bond

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Reference no: EM131828990

Consider these long-term investment data:

• The price of a 10-year $100 par zero coupon inflation-indexed bond is $89.68.

• A real-estate property is expected to yield 2% per quarter (nominal) with a SD of the (effective) quarterly rate of 10%.

Compute the annual rate on the real bond. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Real bond annual rate _________%

Reference no: EM131828990

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