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Suppose that you buy a 1-year maturity bond for $1,000 that will pay you back $1,000 plus a coupon payment of $60 at teh end of the year. What real rate of return will you earn if the inflation rate is

1. 2 percent
2. 4 percent
3. 6 percent
4. 8 percent

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Suppose that you buy a 1-year maturity bond for $1,000 that will pay you back $1,000 plus a coupon payment of $60 at the end of the year. What real rate of return will ...

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Manal Elkhoshkhany, MBA
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  • BA, Ain Shams University, Cairo Egypt
  • MBA, California State University, Sacramento
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