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Calculate the nominal and real returns for the following corporate bond investment: Purchased for $840 one year ago, 4% coupon rate, sold for $894. The
Calculate the nominal and real returns for the following corporate bond investment:
Purchased for $840 one year ago, 4% coupon rate, sold for $894. The inflation rate was 5.0% during the year. Would you consider this an appropriate investment if Treasury bills had yielded 6.0% over the same period?
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