What real rate of return will you earn if inflation rate

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Reference no: EM131219519

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 you earn if the inflation rate is

a. 2 percent

b. 4 percent

c. 6 percent

d. 8 percent

Reference no: EM131219519

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