# Fight Finance

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An investor bought a bond for $100 (at t=0) and one year later it paid its annual coupon of$1 (at t=1). Just after the coupon was paid, the bond price was \$100.50 (at t=1). Inflation over the past year (from t=0 to t=1) was 3% pa, given as an effective annual rate.

Which of the following statements is NOT correct? The bond investment produced a: