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Getty Markets Has Bonds Outstanding That Pay a 5 Percent

Question 112

Multiple Choice

Getty Markets has bonds outstanding that pay a 5 percent semiannual coupon,have a 5.28 percent yield to maturity,and a face value of $1,000.The current rate of inflation is 4.1 percent.What is the real rate of return on these bonds?


A) 0.86 percent
B) 0.90 percent
C) 1.04 percent
D) 1.13 percent
E) 1.19 percent

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