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3. Assume that the Bangladeshi economy experienced a deflation during the year and the CPI decreased by 1% in the first six months of the
3. Assume that the Bangladeshi economy experienced a deflation during the year and the CPI decreased by 1% in the first six months of the year, and by 2% during the second six months of the year. If an investor had purchased an inflation indexed bond with a par value of $10,000 and a coupon rate of 5% how much would she receive in interest during the year?
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