Multiple Choice
If inflation is 6%,what real rate of return is earned by an investor in a bond that was purchased for $1,000,has an annual coupon of 8%,and was sold at the end of the year for $960?
A) −1.89%
B) 1.92%
C) −2.66%
D) 2.47%
Correct Answer:
Verified
Correct Answer:
Verified
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