Problem 10-6 Bond Returns [LO 2]

Consider the following information for a period of years.

Series	Arithmetic Mean
Large-company stocks	11.7	%
Small-company stocks	16.4
Long-term corporate bonds	8.1
Long-term government bonds	8.0
Intermediate-term government bonds	5.6
U.S. Treasury bills	3.8
Inflation	3.6

Requirement 1:

What is the historical real return on long-term government bonds?(Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

Real return

%

Requirement 2:

What is the historical real return on long-term corporate bonds?(Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

Real return

%