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    Exam 6: Interest Rates and Bond Valuation
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    If Your Nominal Rate of Return Is 8
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If Your Nominal Rate of Return Is 8

Question 64

Question 64

Multiple Choice

If your nominal rate of return is 8.68 percent and your real rate of return is 2.05 percent, what is the inflation rate?


A) 5.32 percent
B) 6.50 percent
C) 6.29 percent
D) 6.63 percent
E) 16.77 percent

Correct Answer:

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