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Vaishali today purchased a bond at a quoted price of 9 6 . 3 . The bond matures in six years, pays semi-annual interest, and

Vaishali today purchased a bond at a quoted price of 96.3. The bond matures in six years, pays semi-annual interest, and has a 7.5% coupon rate. If Vaishali holds the bond to maturity, what real rate of return will she earn if inflation remains constant at 2.5%?


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