Question: 1 . ) Ariellle realized that while the nominal interest rate in the bond she invested in was 7 . 1 % , the inflation

1.)Ariellle realized that while the nominal interest rate in the bond she invested in was 7.1%, the inflation level this year was 3.1%. Given the Fisher Equation, what would be the real interest rate of this bond?
3.88%
4.12%
4.00%
3.95%
2.)The market price of the bond at the beginning of the year was $976.53. At the end of the year, the price went down to $973.45. Assuming that the bonds Face Value was $1,000 and the annual coupon rate was 2%, whats the total rate of return for the bond?
2.51%
1.73%
3.56%
0.23%

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