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Q 1 : An investor buys a 5 - year real return bond ( par value = $ 1 , 0 0 0 ) ,

Q1: An investor buys a 5-year real return bond (par value =$1,000), which offers a coupon rate =5%. Inflation rates for years 1-5(inclusive) are: 3%,6%,5%,4% and 2%, respectively. Calculate the nominal and real rates of return (1 suggest using a chart as we did in class).
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