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Suppose that you buy a 1-year maturity bond with a coupon of 7.5% paid annually. If you buy the bond at its face value, what
Suppose that you buy a 1-year maturity bond with a coupon of 7.5% paid annually. If you buy the bond at its face value, what real rate of return will you earn if the inflation rate is 2%? 4%? 8.75%? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.) Real Rate of Return 2% 8.75%
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