Question: INFORMATION:A bond has 10 years until maturity, a coupon rate of 8.6%, and sells for $1,140. Interest is paid annually. (Assume a face value of

INFORMATION:A bond has 10 years until maturity, a coupon rate of 8.6%, and sells for $1,140. Interest is paid annually. (Assume a face value of $1,000.)

QUESTION:

If the inflation rate during the year is 3%, what is the real rate of return on the bond? ANSWER IN %

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.

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