Mathematics, 09.06.2020 09:57 stphdrn4347
Suppose that you buy a two-year 8% bond at its face value.
A. What will be your nominal return over the two years if inflation in 3% in the first year 5 % in the second year. What will be your real return?
B. Suppose that the bond is a TIPS. What will be your real and nominal returns?
Answers: 1
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Suppose that you buy a two-year 8% bond at its face value.
A. What will be your nominal return over...
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