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Suppose that you buy a 1-year maturity bond for $1,000 which is a real return bond with a coupon rate of 4%. What will the
Suppose that you buy a 1-year maturity bond for $1,000 which is a real return bond with a coupon rate of 4%. What will the cash flow provided by the bond be for each of the four Inflation rates? What will be the real and nominal rates of return on the bond in each scenarlo? (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. The Inflation rate is 2%. Total cash flow Nominal return Real return b. The Inflation rate is 4% Total cash flow Nominal return Real return c. The Inflation rate is 6%. Total cash flow Nominal return Real return
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