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The nominal (officially stated) rate of interest on a bond is 7.6%. The expected average annual rate of inflation over the remaining life of the
The nominal (officially stated) rate of interest on a bond is 7.6%. The expected average annual rate of inflation over the remaining life of the bond is 2.4%. What is the real rate of interest? Go out three decimal places - for example, write 5.4% as .054.
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