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QUESTION
you buy a one year maturity bond for 1000 that will pay you back 1000 plus coupon payment of 70 at the end of the year.
you buy a one year maturity bond for 1000 that will pay you back 1000 plus coupon payment of 70 at the end of the year. what real rate of return wil you earn if the inflation rate is
a) 2%
b) 4%
c) 6%
d) 8%
