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Question # 2 to # 3 use the following setup: The price of a one - year zero - coupon bond is $ 9 8

Question #2 to #3 use the following setup:
The price of a one-year zero-coupon bond is $980.50 today. Its face value is $1000.
What is the (nominal) rate of return if you hold the bond from now until its maturity? %
Question 3
Suppose the inflation rate is 2.2%, what is the real rate of return from the bond?
Use your answer from #2 to solve this question.
A.2.52%
B.-0.21%
C.4.18%
D.3.85%

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