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The nominal rate of interest on a bond is 8% and the expected inflation premium is 4%. This results in an approximate real rate of
The nominal rate of interest on a bond is 8% and the expected inflation premium is 4%. This results in an approximate real rate of interest of 4% on the bond.
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Investment Science
Authors: David G. Luenberger
1st Edition
0195108094, 978-0195108095
