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b) (unrelated to a) You are offered two types of bonds, and an investment of $1000. Both currently have a nominal yield to maturity of

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b) (unrelated to a) You are offered two types of bonds, and an investment of $1000. Both currently have a nominal yield to maturity of 4%. However, the reason for the 4% is different. One bond is a floating bond, paying 10 yr treasury rate +2% and the other is indexed to inflation, paying a real rate of 3%. Assume that the 10 yr treasury yield stays the same in real terms, but inflation increases to 4%. What would be the YTM for these bonds

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