Question: Consider a 2-year coupon bond with a $1000 face value and a 10% coupon rate, its current price is $980. Calculate the bond's yield to

Consider a 2-year coupon bond with a $1000 face value and a 10% coupon rate, its current price is $980. Calculate the bond's yield to maturity. If the annualized expected rate of inflation over the life of the bond is 8%, what is the real interest rate of this bond?

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