Getty Markets has bonds outstanding that pay a 5 percent semiannual coupon, have a 5.28 percent yield to maturity

A bond that pays interest annually yielded 7.47 percent last year. The inflation rate for the same period was 4 percent. What was the actual real rate of return on this bond for last year?    A.  2.19 percent B.  2.25 percent C.  3.34 percent D.  3.41 percent E.  3.49 percent

105.

Getty Markets has bonds outstanding that pay a 5 percent semiannual coupon, have a 5.28 percent yield to maturity, and a face value of $1,000. The current rate of inflation is 4.1 percent. What is the real rate of return on these bonds?    A.  0.86 percent B.  0.90 percent C.  1.04 percent D.  1.13 percent E.  1.19 percent

106.

The outstanding bonds of Winter Time Products provide a real rate of return of 5.6 percent. The current rate of inflation is 4.68 percent. What is the actual nominal rate of return on these bonds?    A.  8.58 percent B.  9.33 percent C.  9.71 percent D.  9.76 percent E.  10.54 percent (1 + 0.056) × (1 + 0.0468) - 1 = 10.54 percent