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Rahul bought an 10.5% annual coupon bond at par. One year later; he sold the bond at a quoted price of 99. During the year,

Rahul bought an 10.5% annual coupon bond at par. One year later; he sold the bond at a quoted price of 99. During the year, market interest rates rose, and inflation was 3.5%. What real rate of return did Rahul earn on this investment

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