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  3. 2. the bonds of megaside trading are selling in th

2. The bonds of MEGASIDE Trading are selling in the market at an effective interest...

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2. The bonds of MEGASIDE Trading are selling in the market at an effective interest rate of 12%. Investors are risking their investments on MEGASIDE's bonds at a rate of 3.2%. Statistics revealed that inflation rate is expected to remain at 3.7%. Compute the following: a. Risk-free rate of bond investment b. Real rate of interest on bonds

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