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Which of the following is correct about relations between nominal rate, real rate, and inflation? A. The YTM of a bond is a real rate
Which of the following is correct about relations between nominal rate, real rate, and inflation?
A. The YTM of a bond is a real rate
B. All else being equal, as inflation rises, your real rate of return on the bond you hold decreases
C. All else being equal, as inflation rises, your real rate of return on the bond you hold increases
D. Real rate is equal to nominal
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