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Q3 Cyndi bought an 5.5% annual coupon bond at par. One year later, she sold the bond at a quoted price of 95. During the
Q3Cyndi bought an 5.5% annual coupon bond at par. One year later, she sold the bond at a quoted price of 95. During the year, market interest rates rose and inflation was 2%. What real rate of return did Cyndi earn on this investment? (30marks)
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