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Assume the current real risk free rate (RFR) is estimated at 2.5%. Inflation in the coming year is expected to be quite low, and the

Assume the current real risk free rate (RFR) is estimated at 2.5%. Inflation in the coming year is expected to be quite low, and the inflation premium is set to only 1%.

Calculate the expected interest rate for a bond under the following conditions, and answer the associated questions.

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