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On January 2nd two years ago, Donovan purchased a 15 -year, 6%,$15,000 real return bond. During the year, the Consumer Price Index (CPI) increased by

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On January 2nd two years ago, Donovan purchased a 15 -year, 6%,$15,000 real return bond. During the year, the Consumer Price Index (CPI) increased by 2.5%. Last year, the CPI increased by 2.3%. What will the face amount of Donovan's bond be on January 1st? ? a) last year would be $15,375.00 with an interest payment of $900.00 b) this year would be $15,375.00 with an interest payment of $922.50 c) this year would be $15,728.63 with an interest payment of $943.72 d) last year would be $15,759.38 with an interest payment of $945.56

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