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We have seen that bond prices can be affected by changes in interest rates. Bond prices car also be affected by changes in inflation. Specifically,

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We have seen that bond prices can be affected by changes in interest rates. Bond prices car also be affected by changes in inflation. Specifically, bond prices tend to decline with high inflation. Can you offer a reason for why this might happen? (HINT: Does a bond's coupo payment change over time or stay fixed?)

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