Deep Hollow Welding's bond pays a coupon rate of 6.5 percent,has a yield to maturity of 6.98 percent,and a face value of $1,000.The current rate of inflation is 2.68 percent.What is the real rate of return on these bonds?
A) 4.31%
B) 4.19%
C) 3.82%
D) .48%
E) 1.48%
Correct Answer:
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