Question: Topic: Bond and stock ValuationDirection: solve by hand, using a financial calculator or excel. Don't forget to demonstrate how you got your results. Also, make

Topic: Bond and stock ValuationDirection: solve by hand, using a financial calculator or excel. Don't forget to demonstrate how you got your results. Also, make sure you explicitly answer the questions when they're based on numerical values or they will be considered unanswered or no partial credits will be granted.

a. If an investment has a nominal return of 3.8% per year, while the inflation is expected to be 3.6% per year, what would be its real return? What if the inflation is 4.2%

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