What is the real return on long-term corporate bonds

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Reference no: EM13933712

Consider the following information on different asset classes from 1926 through 2011.

Series Arithmetic Mean

Large-Company Stocks 11.8%

Small-Company Stockst 16.5

Long-term corporate bonds 6.4

Long-term government bonds 6.1

Intermediate-term government bonds 5.5

U.S. Treasury bills 3.6

Inflation 3.1

Requirement 1: What is the real return on long-term government bonds? ______% (two decimal places)

Requirement 2: What is the real return on long-term corporate bonds? ______% (two decimal places)

Reference no: EM13933712

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