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4. The current real rate is the current interest rate minus the current (or latest past) inflation rate, while the real rate (without the word

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4. The current real rate is the current interest rate minus the current (or latest past) inflation rate, while the real rate (without the word current) is the current interest rate minus the expected future inflation rate over the life of the security. O True False 5. Interest rate risk is the risk that a decline in interest rates will lead to lower income when bonds mature and funds are reinvested. O True False

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