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Roy's Welding's Bond Has an Annual Rate of Return of 5.97

Question 41

Multiple Choice

Roy's Welding's bond has an annual rate of return of 5.97 percent and a face value of $1,000.The current rate of inflation is 3.02 percent.What is the real rate of return on these bonds?


A) 3.31%
B) 2.86%
C) 3.09%
D) 3.48%
E) 2.94%

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