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Today Elina purchased a bond at a quoted price of 95.5 per $100 of par value. The bond matures in six years, pays semi-annual interest,
Today Elina purchased a bond at a quoted price of 95.5 per $100 of par value. The bond matures in six years, pays semi-annual interest, and has a 6% coupon rate. If Elina holds the bond to maturity, what real rate of return will she earn if inflation remains constant at 1.8%? Select one: O a. 5.04% O b. 4.72% c. 6.81% O d. 4.97% e. 5.49%
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