Question

Bob bought an 8.5% annual coupon bond at par. One year later, he sold the bond at a quoted price of 98. During the year, market interest rates rose and inflation was 3%. What real rate of return did Bob earn on this investment?

Related Questions

A 12-year bond has an annual coupon rate of 9%. The coupon rate will remain fixed until the bond mat... Assume that you have a bond with a 22-year life, a five percent coupon rate, semi-annual coupon paym... A three-year bond has 8.0% coupon rate and face value of $1000. If the yield to maturity on the bond...