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NEED ASAP!! Suppose that you buy a 1-year maturity bond for $1,000 that will pay you $1,000 plus a coupon payment of $63 at the
NEED ASAP!!
Suppose that you buy a 1-year maturity bond for $1,000 that will pay you $1,000 plus a coupon payment of $63 at the end of the year. a. What real rate of return will you earn if the inflation rate is 2.3 percent? (Round your answer to 2 decimal places. Use minus sign to enter negative real rate of return, if any.) b. What real rate of return will you earn if the inflation rate is 3.7 percent? (Round your answer to 2 decimal places. Use minus sign to enter negative real rate of return, if any.) Real rate of return c. What real rate of return will you earn if the inflation rate is 5.7 percent? (Round your answer to 2 decimal places, Use minus sign to enter negative real rate of return, if any.) heal rate of return d. What real rate of return will you earn if the inflation rate is 7.4 percent? (Round your answer to 2 decimal places. Use minus sign to enter negative real rate of return, if any.) Step by Step Solution
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