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Required rate of return on a bond A 10% $100 government bond that pays interest annually, and currently is 5 years from maturity, is selling

Required rate of return on a bond

A 10% $100 government bond that pays interest annually, and currently is 5 years from maturity, is selling for $103.29. What is the required rate of return (yield) on this bond? What is the implied real interest rate if the expected inflation rate is 5%p.a.?

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