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Determine whether the following statements are TRUE or FALSE. Briefly explain your answers. (a) If the actual inflation rate is unexpectedly high, the realized real
Determine whether the following statements are TRUE or FALSE. Briefly explain your answers. (a) If the actual inflation rate is unexpectedly high, the realized real interest rate can be negative. (b) If the price of a perpetuity is below its par value, the yields to maturity is higher than the coupon rate.
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