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Suppose that you buy a two-year 9% bond at its face value. What will be your real return on the two-year if inflation is
Suppose that you buy a two-year 9% bond at its face value. What will be your real return on the two-year if inflation is 3% in the first year and 6% in the second year? 29.72% 8.82% 18.00% 18.81% Question 4 (5 points) Suppose that you buy a two-year 9% TIPS (Treasury Inflation-Protected Securities) at its face value. What will be your nominal return on the two-year if inflation is 3% in the first year and 6% in the second year? 29.72% 33.39% 16.64% 26.15%
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