159k views
3 votes
Getty markets has bonds outstanding that pays a 5 percent semiannual coupon, have a 5.28 percent yield to maturity, and a face value of $1,000. the current rate of inflation is 4.1 percent. what is the real rate of return on these bonds?

User Ticster
by
7.3k points

1 Answer

3 votes
the real rate of returrn is 1.13 percent
User Salahy
by
8.5k points