What is my expected real rate of return

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Reference no: EM131521847

Mulligan, Inc. has $1,000 face-value, 8% coupon bonds outstanding with ten years to maturity. The bonds make annual coupon payments and currently sell for $1,050. If inflation is expected to average 2.6% annually over the life of the bonds, then what is my expected real rate of return assuming I purchase the bonds today and hold them until maturity?

Reference no: EM131521847

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