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What was your real rate of return

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Reference no: EM132270556

  1. A $1,000 face value bond is currently quoted at 93.7. The bond pays semiannual payments of $32.50 and matures in 8 years. What is the coupon rate?
  2.  Last year, you earned a rate of return of 7.86 percent on your bond investments. During that time, the inflation rate was 2.15 percent. What was your real rate of return?

Reference no: EM132270556

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