The bonds of Frank's Welding, Inc. pay an 8% coupon, have a 7.98% yield to maturity and have a face value of $1,000. The current rate of inflation is 2.5%. What is the real rate of return on these
Bonds?
A) 5.32%
B) 5.35%
C) 5.37%
D) 5.42%
E) 5.48%
Correct Answer:
Verified
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