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Question 7: Time: 25 minutes Total: 15 marks Harmanjeet today purchased a bond at a quoted price of 94.2. The bond matures in eight years,
Question 7: Time: 25 minutes Total: 15 marks Harmanjeet today purchased a bond at a quoted price of 94.2. The bond matures in eight years, pays semi-annual interest, and has a 9.5% coupon rate. If Harmanjeet holds the bond to maturity, what real rate of return will she earn if inflation remains constant at 4.25%
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