Business, 10.02.2022 14:00 genyjoannerubiera

Ten years ago, ABC Corporation invested in 10-year US Treasury bonds that paid 3% interest. At the time, the projection was that inflation over the 10-year period would be 0.5% per year. As it turns out, the average annual rate of inflation over the 10-year period was 1.5%. As a result, the ex-post rate of return on ABC Corporation's investment was , instead of the return that was expected ex-ante.

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Ten years ago, ABC Corporation invested in 10-year US Treasury bonds that paid 3% interest. At the t...

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