The income yield from a one-year infrastructure bond purchased today is 0.5%. Compute the real return from this bond if the inflation rate a year later is expected to be 4% and the capital gains yield is zero.

Question

Quizplus · Accepted Answer

The Answer of The income yield from a one-year infrastructure bond purchased today is 0.5%. Compute the real return from this bond if the inflation rate a year later is expected to be 4% and the capital gains yield is zero.

The Income Yield from a One-Year Infrastructure Bond Purchased Today