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An investor buys a 5 - year real return bond ( par value ( = $ 1 , 0 0 0 )

An investor buys a 5-year real return bond (par value \(=\$ 1,000\)), which offers a coupon rate \(=5\%\). Inflation rates for years \(1-5\)(inclusive) are: \(3\%,6\%,5\%,4\%\) and \(2\%\), respectively. Calculate the nominal and real rates of return (I suggest using a chart as we did in class).

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