Illustrate what real rate of return will you earn

Reference no: EM1330072

Description of Real rate of return

Suppose that you buy a 1-year maturity bond for $1,000 that will pay you back $1,000 plus a coupon payment of $60 at teh end of the year. What real rate of return will you earn if the inflation rate is

1. 2 percent
2. 4 percent
3. 6 percent
4. 8 percent

Reference no: EM1330072

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