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Suppose that you buy a 2 -year maturity bond for $970 that will pay you coupon payments of $60 at the end of each year.

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Suppose that you buy a 2 -year maturity bond for $970 that will pay you coupon payments of $60 at the end of each year. The par value of the bond is $1,000. What real rate of eturn will you earn if the inflation rate is 5 percent? Note: DO NOT calculate the approximate version of the real rate. Multiple Choice 2.55% 1.55%. 7.67%. 2.67% 2%

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