Consider the following information for a period of years: Long-term government bonds Long-term corporate bonds Inflation Arithmetic Mean a. Long-term government bonds b. Long-term corporate bonds 7.4% 7.5 4.2 a. What is the real return on long-term government bonds? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the real return on long-term corporate bonds? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. % %
Consider the following information for a period of years: Long-term government bonds Long-term corporate bonds Inflation Arithmetic Mean a. Long-term government bonds b. Long-term corporate bonds 7.4% 7.5 4.2 a. What is the real return on long-term government bonds? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the real return on long-term corporate bonds? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. % %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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