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Mulligan, Inc. has $1,000 face-value, 8% coupon bonds outstanding with ten years to maturity. The bonds make semi-annual coupon payments and currently sell for $1,000.

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Mulligan, Inc. has $1,000 face-value, 8% coupon bonds outstanding with ten years to maturity. The bonds make semi-annual coupon payments and currently sell for $1,000. If inflation is expected to average 2.6% annually over the life of the bonds, then what is my expected real rate of return assuming I purchase the bonds today and hold them until maturity? Select one: a. 3.26% b. 5.26% c.5.42% d. 7.27% I e. None of the above. Clear my choice

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