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  • June 17, 2017 at 5:57 am #16023
    admin
    Keymaster

    If the annualized rate of return on insured tax exempt municipal bonds will be 3% per annum and the inflation rate remains at 2% per annum, then what will be their real rate of return over 30 years?

    June 17, 2017 at 5:57 am #16024
    admin
    Keymaster

    Solution
    Real rate of return – 1.03/1.02 (30) – 1 = ∼34%

    • This reply was modified 5 years, 11 months ago by admin.
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