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T he bonds of Wang 's Welding, Inc. pay an 8% coupon, have a 8 .9 7 % yield to maturity and have a face

The bonds of Wang's Welding, Inc. pay an 8% coupon, have a8.97% yield to maturity and have a face value of $1,000. The current rate of inflation is 2.35%. What is the real rate of return on these bonds?

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