What is the nominal interest rate on the bond

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Reference no: EM131220756

Suppose the yield to maturity on a 1-year bond is 6 percent. Everyone expects inflation over the year to be 3 percent, but it turns out to be 5 percent.

What is the nominal interest rate on the bond, the ex ante real rate, and the ex post real rate?

Reference no: EM131220756

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