Multiple Choice
A bond that pays interest annually yields a 6.875% rate of return. The inflation rate for the same period is 4.35%. What is the real rate of return on this bond?
A) 2.38%
B) 2.42%
C) 2.53%
D) 2.61%
E) 2.64%
Correct Answer:
Verified
Correct Answer:
Verified
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