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Given an inflation rate of 8%, what real rate of return is earned by an investor in a bond with a face value of $1,000
Given an inflation rate of 8%, what real rate of return is earned by an investor in a bond with a face value of $1,000 that was purchased for $1,000, has an annual coupon rate of 9%, and was sold at the end of the year for $960?
1.89%
1.92%
2.47%
2.78%
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