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Suppose that you buy a 2 -year maturtiy bond for $970 that will pay you coupon paymerts of $60 at the end of each year.
Suppose that you buy a 2 -year maturtiy bond for $970 that will pay you coupon paymerts of $60 at the end of each year. The par value of the bond is $1,000. What real rate of retum will you eam if the inflation rate is 5 percent? Note: DO NOT calculate the approximate verslon of the real rate. Multople Choise 255% 1.55% 7.67% 267% 2%
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Audit And Accounting Guide Employee Benefit Plans
Authors: American Institute Of Certified Public Accountants
1st Edition
0870515756, 978-0870515750
