Question: Problem 10-6 Bond Returns (LO 2] Consider the following information for a period of years: Long-term government bonds Long-term corporate bonds Inflation Arithmetic Mean 6.4%

 Problem 10-6 Bond Returns (LO 2] Consider the following information for

Problem 10-6 Bond Returns (LO 2] Consider the following information for a period of years: Long-term government bonds Long-term corporate bonds Inflation Arithmetic Mean 6.4% 6.5 3.7 a. What is the real return on long-term government bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the real return on long-term corporate bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Long-term government bonds Long-term corporate bonds

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