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Business, 17.02.2020 23:35 keananashville

The bonds of Frank's Welding, Inc. pay an 8% coupon, have a 7.98% yield to maturity and have a face value of $1,000. The current rate of inflation is 2.5%. What is the real rate of return on these bonds?

a. 5.32%
b. 5.35%
c. 5.37%
d. 5.42%
e. 5.48%

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The bonds of Frank's Welding, Inc. pay an 8% coupon, have a 7.98% yield to maturity and have a face...

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