Multiple Choice
If you expect the inflation rate to be 5 percent next year and a one-year bond has a yield to maturity of 7 percent,then the real interest rate on this bond is
A) -12 percent.
B) -2 percent.
C) 2 percent.
D) 12 percent.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q88: The current yield is the best measure
Q89: Which of the following are generally true
Q90: If a $10,000 face value discount bond
Q91: An ex post real interest rate is
Q92: The yield to maturity on a consol
Q94: All else being equal,the greater the interest
Q95: Which of the following are true concerning
Q96: Distinguish between coupon rate,yield to maturity,and current
Q97: With an interest rate of 5 percent,the
Q98: What is the purpose of discounting cash