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- If you buy a 3 year 5.0% coupon rate regular bond at face value and inflation is 6.6% in year 1, 4.4% in year

- If you buy a 3 year 5.0% coupon rate regular bond at face value and inflation is 6.6% in year 1, 4.4% in year 2,5.2% in year 3, what are your total 3-year nominal rate of returns? 1.05-1 = .1576 or 15.8%

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