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An investment had a nominal return of 10.8 percent last year. The Inflation rate was 2.6 percent. What was the real return on the investment?

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An investment had a nominal return of 10.8 percent last year. The Inflation rate was 2.6 percent. What was the real return on the investment? Multiple Choice 8.88% 13.68% 7.99% 740 10.54% Both Bond Sam and Bond Dave have 9 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 years to maturity, whereas Bond Dave has 20 years to maturity If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Sam? 0-10.72% 0-9.68% O 9.92% 0-9.66% If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave? 0-39.45% O 33.42% 0-28.27% 0-28.29% If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Sam be then? O 11.00% O 11.02% 0-9.63% 9.92% If rates were to suddenly fall by 4 percent instead, what would the percentage change in the price of Bond Dave be then? 0-28.24% O 50.19% O 50.21% 32 4704

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