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Suppose that you buy a 3-year 10% corporate bond at its face value. What is your nominal return over the three years if inflation is
Suppose that you buy a 3-year 10% corporate bond at its face value. What is your nominal return over the three years if inflation is 3.5% in the 1st year, 4.2% in the 2nd year, and 5.1% in the 3rd year? What will be your real return?
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