Corporate FInace Assignment/ Professional Essay Writers
May 12th, 2020
A bond par value is $2,000 and the coupon rate is 6 percent. The bond price was $1,946.61 at the beginning of the year and $1,982.79 at the end of the year. The inflation rate for the year was 2.4 percent. What was the bond’s real return for the year?
Answer Choices:
a. 6.05%.
b. 5.49%.
c. 5.86%.
d. 8.02%.
e. 4.80%. Get Finance Help Today