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Suppose you bought a $1,000 face value bond with a coupon rate of 3.8 percent one year ago. The purchase price was $988.5. You sold
Suppose you bought a $1,000 face value bond with a coupon rate of 3.8 percent one year ago. The purchase price was $988.5. You sold the bond today for $989.7. If the inflation rate last year was 2.1 percent, what was your exact real rate of return on this investment? ______%
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