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If inflation is 6%, what real rate of return is earned by an investor in a bond that was purchased for $1,000, has an annual

If inflation is 6%, what real rate of return is earned by an investor in a bond that was purchased for $1,000, has an annual coupon of 8%, and was sold at the end of the year for $960?

Select one:

A. 2.66%

B. 1.92%

C. 1.89%

D. 2.47%

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