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A bond offers a real rate of interest of 8.5% per annum. If expected inflation is 4.0% per annum, the nominal rate of interest per

A bond offers a real rate of interest of 8.5% per annum. If expected inflation is 4.0% per annum, the nominal rate of interest per annum, according to the exact Fisher equation, is (in percentage to nearest two decimal places; do not use the percentage sign eg 2.881% is 2.88)

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