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Suppose that you buy a 1-year maturity bond with a coupon of 8.9% 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 8.9% paid annually. If you buy the bond at its face value, what real rate of return will you earn if the inflation rate is 3%? 5%? 10.85%?
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