Question

The government issues a bond (security) that promises to pay $100 in ten years. In the...

The government issues a bond (security) that promises to pay $100 in ten years. In the year that the government issues the bond, people buys it for $87. During the 10-year period, CPI changed from 100 to 102.3. Based on this information, calculate the real rate of return of the government bond over 10 years in percentage.

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