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Heman today purchased a bond at a quoted price of 96.3. The bond matures in six years, pays semi-annual interest, and has a 7.5% coupon
Heman today purchased a bond at a quoted price of 96.3. The bond matures in six years, pays semi-annual interest, and has a 7.5% coupon rate. If Heman holds the bond to maturity, what real rate of return will she earn if inflation remains constant at 3.5%?
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