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You are evaluating the potential purchase of a municipal bond with a 2.5% coupon, trading...

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Finance

You are evaluating the potential purchase of a municipal bond with a 2.5% coupon, trading at par ($1,000), with 5 years left to maturity. You expect inflation to be approx. 3% annually over 5 yr period. What is your expected real interest rate on this potential investment?

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