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A Bond That Pays Interest Annually Yields a Rate of Return

Question 33

Multiple Choice

A bond that pays interest annually yields a rate of return of 8.74 percent.The inflation rate for the same period is 2.48 percent.What is the actual real rate of return on this bond?


A) 5.79%
B) 5.87%
C) 6.11%
D) 6.04%
E) 5.91%

Correct Answer:

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