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    Principles of Corporate Finance Study Set 5
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    Exam 6: Making Investment Decisions With the Net Present Value Rule
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    If the Nominal Interest Rate Is 7
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If the Nominal Interest Rate Is 7

Question 15

Question 15

Multiple Choice

If the nominal interest rate is 7. 5% and the inflation rate is 4%, what is the real interest rate?


A) 4%
B) 9.5%
C) 3.4%
D) None of the above

Correct Answer:

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