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E.g., if inflation averages 5%, buying a bond at 90 due in 86.1 years results in a an average capital-loss of -4.6% per year which is offset by an average gain from coupons of 1% per year, for a yearly net-loss of purchasing-power of -3.6%, as I stated. There is nothing wrong with my math.

Gotcha - that's internally consistent. The pure coincidence that the answer turned out to be the inverse of 8.6 - 5 threw me off. Thanks for the going to the trouble of explaining it to me!

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