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Today Elina purchased a bond at a quoted price of 98.7 per $100 of par value. The bond matures in seven years, pays semi-annual interest,
Today Elina purchased a bond at a quoted price of 98.7 per $100 of par value. The bond matures in seven years, pays semi-annual interest, and has a 6.5% 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. 5.27% O b. 5.15% O c. 4.85% O d. 6.81% O e. 5.81%
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