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Exercise #7 You purchased a ten-year bond with a coupon rate of 9 percent one year ago when the market rate was 8 percent. Today,
Exercise #7
You purchased a ten-year bond with a coupon rate of 9 percent one year ago when the market rate was 8 percent. Today, one year later, the market rate has declined to 6 percent.
a) What is your percentage return on investment for the year?
b) If inflation is 3 percent, what is the real rate of return on this investment?
Do it in excel please
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