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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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    You Earn a 5% Real Return
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You Earn a 5% Real Return

Question 299

Question 299

Multiple Choice

You earn a 5% real return. If the inflation rate is 4%, what is your nominal return?


A) 0.96%
B) 1.09%
C) 9.00%
D) 9.20%
E) 10.92%

Correct Answer:

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