If a Bond Provides a Real Rate of Return of 2.89

Multiple Choice

If a bond provides a real rate of return of 2.89 percent at a time when inflation is 3.21 percent,what is the nominal rate of return on the bond?

A) 6.10 percent
B) 6.13 percent
C) 6.16 percent
D) 6.19 percent
E) 6.22 percent