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If you expect the inflation rate to be 5 percent next year and a-(Answered)

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  1. If you expect the inflation rate to be 5 percent next year and a one-year bond has a yield to maturity of 7 percent, then the real interest rate on this bond is

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-12 percent.

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-2 percent.

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2 percent.

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12 percent.

 

Paper#9256955 | Written in 27-Jul-2016

Price : $16
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