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Mr. X invests $1,000 at a 10 percent nominal rate for one year. If the inflation rate is 4 percent, what is the real value of the investment at the end of one year?


A) $1,100
B) $1,000
C) $1,058
D) $1,040

E) None of the above
F) C) and D)

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A bond has a face value of $1,000, a coupon rate of 0 percent, yield to maturity of 9 percent, and 10 years to maturity. This bond's duration is


A) 6.7 years.
B) 7.5 years.
C) 9.6 years.
D) 10.0 years.

E) A) and D)
F) A) and C)

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