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The bonds of B.F. Fabricators pay a 10 percent coupon, have a 9.64 percent yield to maturity, and have a face value of $1,000. The

The bonds of B.F. Fabricators pay a 10 percent coupon, have a 9.64 percent yield to maturity, and have a face value of $1,000. The current rate of inflation is 3.2 percent. What is the actual real rate of return on these bonds? Show all work!

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