Multiple Choice
What real rate of return is earned by a one-year investor in a bond that was purchased for $1,000,has an 8% coupon,and was sold for $960 when the inflation rate was 6%?
A) -1.89%
B) 1.92%
C) 5.66%
D) 11.47%
Correct Answer:
Verified
Correct Answer:
Verified
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