Multiple Choice
What real rate of return is earned by a one-year investor in a bond that was purchased for $1,000, has a coupon rate of 8%, and was sold for $960 when the inflation rate was 6%?
A) -1.89%
B) 1.92%
C) -2.66%
D) 2.47%
Correct Answer:

Verified
Correct Answer:
Verified
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