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6. Suppose that you buy a 1-year maturity bond with a coupon of 7% paid annually. If you buy the bond at its face value,

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6. Suppose that you buy a 1-year maturity bond with a coupon of 7% paid annually. If you buy the bond at its face value, what real rate of return will you earn if the inflation rate is: (a) 4%? (b) 6%? (c) 8%

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