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    Exam 11: Introduction to Risk, Return, and the Opportunity Cost of Capital
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    What Real Rate of Return Is Earned by a One-Year
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What Real Rate of Return Is Earned by a One-Year

Question 96

Question 96

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:

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