Real rate of return on bonds


Bonds outstanding that pay a 5% semiannual coupon, have a 5.5% yield-to-maturity, and a face value of $1,000. The current rate of inflation is 4%. What is the real rate of return on these bonds?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Real rate of return on bonds
Reference No:- TGS0675124

Now Priced at $5 (50% Discount)

Recommended (92%)

Rated (4.4/5)