Suppose you bought a $1,000 face value bond with a coupon rate of 3.8 percent one year ago. The purchase price was $988.6. You sold the bond today for $990.6. If the inflation rate last year was 1.6 percent, what was your exact real rate of return on this investment? ______%

Answer rating: 100% (QA)

To calculate the exact real rate of return on the investment we need to adjust for inflation The rea... View the full answer