Market Interest Rates Have Risen Substantially in the 5 Years

Multiple Choice

Market interest rates have risen substantially in the 5 years since an investor purchased Treasury bonds that were offering a 7% return.If the investor sells now he or she is likely to receive:

A) greater than a 7% total return.
B) less than a 7% total return.
C) a 7% total rate of return.
D) a 7% nominal return but less than a 7% real return.