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Question 3 A gilt maturing one year from today offers an expected real rate of return of 4.9%. If inflation is expected to be 2.8%

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Question 3 A gilt maturing one year from today offers an expected real rate of return of 4.9%. If inflation is expected to be 2.8% over the same year what is the nominal rate of return on the bond? (Give your answer to two decimal places). A 4.28% B 6.57% C 7.83% D 1 Point 8.39%

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