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An investor purchases a real return bond with a real coupon rate of 3% when inflation is 2%. If inflation would increase to 4%, the
An investor purchases a real return bond with a real coupon rate of 3% when inflation is 2%. If inflation would increase to 4%, the investor would receive a) a lower nominal return and a lower real return. b) a lower nominal return and a higher real return. c) a higher nominal return and the same real return. d) a higher nominal return and a higher real return.
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