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Question
An investor purchased a $1000 face value bond for $925. The bond has an 8 percent coupon rate, paid annually, and matures in five years. The investor sold the bond one year later for $965, while the price level was increasing at 5 percent. Calculate the pre-tax real realized rate of return on the investment?a. -.7%
b. 8%
c. 3%
d. 5%
Answer
This answer is hidden. It contains 3 characters.
Related questions
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