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The Outstanding Bonds of Frank's Welding Provide a Real Rate

Question 91

Multiple Choice

The outstanding bonds of Frank's Welding provide a real rate of return of 2.87%. The current rate of inflation is 4.64%. What is the nominal rate of return on these bonds?


A) 7.33%
B) 7.46%
C) 7.51%
D) 7.64%
E) 7.71%

Correct Answer:

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