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    Fundamentals Of Corporate Finance Study Set 21
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    Exam 7: Interest Rates and Bond Valuation
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    If Investors Require a 7% Nominal Return and the Expected
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If Investors Require a 7% Nominal Return and the Expected

Question 173

Question 173

Multiple Choice

If investors require a 7% nominal return and the expected inflation rate is 3%, what is the expected real return?


A) 1.04%
B) 3.00%
C) 3.88%
D) 4.00%
E) 10.21%

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