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You are considering two investments. One is a government bond offering a nominal return of 4.7% compounded quarterly. The other is a Treasury Inflation-Protected Security
You are considering two investments. One is a government bond offering a nominal return of 4.7% compounded quarterly. The other is a Treasury Inflation-Protected Security (TIPS) offering a real return of 2.7%, compounded annually. If you think that inflation will be 2% per year, compounded annually, which is the better investment
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Behavioral Finance And Wealth Management
Authors: Michael M. Pompian
2nd Edition
1118014324, 978-1118014325
