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if you buy a 3 year 4.9% coupon rate regular bond at face value and inflation is 3.1% in year 1.3.2% in year 2, 7.5% in year 3. what are your total 3-year real rate of returns? A O 15.4% O-93% 009% 32.0%

if you buy a 3 year 4.9% coupon rate regular bond at face value and inflation is 3.1% in year 1.3.2% in year 2, 7.5% in year 3. what are your total 3-year real rate of returns? A O 15.4% O-93% 009% 32.0%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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If you buy a 3 year 4.9% coupon rate regular bond at face value and inflation is 3.1% in year 1, 3.2% in year 2, 7.5% in year 3, what are your total 3-year real rate of returns? 4 15.4% O-9.3% 0 0.9% O 32.0%
Transcribed Image Text:If you buy a 3 year 4.9% coupon rate regular bond at face value and inflation is 3.1% in year 1, 3.2% in year 2, 7.5% in year 3, what are your total 3-year real rate of returns? 4 15.4% O-9.3% 0 0.9% O 32.0%
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