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An investor purchased a 1-year corporate bond with a promised yield of 2.5 percent. The investor expected the annual rate of inflation to be 1.0
An investor purchased a 1-year corporate bond with a promised yield of 2.5 percent. The investor expected the annual rate of inflation to be 1.0 percent; however, the actual rate turned out to be 2.3 percent. What were the expected and the realized real rate of return for the investor.
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