Ask Question
9 August, 06:54

A bond par value is $1,000 and the coupon rate is 6.5 percent. The bond price was $947.00 at the beginning of the year and $985.39 at the end of the year. The inflation rate for the year was 2.2 percent. What was the bond's real return for the year?

+4
Answers (1)
  1. 9 August, 07:02
    0
    10.92%

    Explanation:

    Bond return = ($985.39 - 947.00 + 65) / $947.00

    Bond return =.1092, or 10.92%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A bond par value is $1,000 and the coupon rate is 6.5 percent. The bond price was $947.00 at the beginning of the year and $985.39 at the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers