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During a period of severe inflation, a bond offered a nominal HPR of 77% per year. The inflation rate was 67% per year. a. What

During a period of severe inflation, a bond offered a nominal HPR of 77% per year. The inflation rate was 67% per year.

a. What was the real HPR on the bond over the year? (Round your answer to 2 decimal places.)

Real HPR

b. Find the approximation r_real r_nom i.

Approximation

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