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In January 2021, BBC reported that the inflation rate in the 4 th quarter of 2020 was 0.6%; this rate is higher than expected by

In January 2021, BBC reported that the inflation rate in the 4th quarter of 2020 was 0.6%; this rate is higher than expected by the financial analysts.

Comment on how the inflation rate affects the price of bonds and the nominal interest rate.

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