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During a period of severe inflation, a bond offered a nominal HPR of 79% per...

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Finance

During a period of severe inflation, a bond offered a nominal HPR of 79% per year. The inflation rate was 68% per year. a. What was the real HPR on the bond over the year? (Round your answer to 2 decimal places.)

b. Find the approximation rreal rnom i. Compare your answer in part b to the one in part a.

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