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    Fundamentals of Corporate Finance Study Set 12
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    Exam 5: Interest Rates
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    Given a Nominal Interest Rate of 3% and an Inflation
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Given a Nominal Interest Rate of 3% and an Inflation

Question 74

Question 74

Multiple Choice

Given a nominal interest rate of 3% and an inflation rate of 4.5%,what is the real interest rate?


A) 3%
B) 0%
C) -1.4%
D) 1.5%
E) 7.5%

Correct Answer:

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