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Assume the real yield curve for bonds of a particular credit quality is flat at 8% per annum and the expected inflation rate equals 10%

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Assume the real yield curve for bonds of a particular credit quality is flat at 8% per annum and the expected inflation rate equals 10% per annum. What is the fair price for a two-year zero coupon bond with face value 175,000 (to the nearest 000) ? * 71,00086,000124,000147,000150,000

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