Coupon bonds outstanding with ten years to maturity

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Reference no: EM131306288

Mulligan, Inc has $1000 face-value, 8% coupon bonds outstanding with ten years to maturity. the bonds make semi annual coupon payments and currently sell for 1,000. if inflation is expected to average 2.6% annually over the life of the bonds, then what is my expected real rate of return assuming i purchase the bonds today and hold them until maturity?

Reference no: EM131306288

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