What is the historical real return on long-term government bonds? (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 historical real return on long-term corporate bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
What is the historical real return on long-term government bonds? (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 historical real return on long-term corporate bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
Problem 15DQ
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Refer to Table 12.2. |
a. | What is the historical real return on long-term government bonds? (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 historical real return on long-term corporate bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
TABLE 12.2 Average Annual Returns: 1926-2019
Source: 2020 SBBI Yearbook. Duff & Phelps.
Investment | Average Return |
---|---|
Large-company stocks | 12.1% |
Small-company stocks | 16.3 |
Long-term corporate bonds | 6.4 |
Long-term government bonds | 6.0 |
U.S. Treasury bills | 3.4 |
Inflation | 2.9 |
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