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  3. Study Set
    Principles of Managerial Finance
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    Exam 6: Interest Rates and Bond Valuation
  5. Question
    The Nominal Rate of Interest on a Bond Is 7
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The Nominal Rate of Interest on a Bond Is 7

Question 193

Question 193

True/False

The nominal rate of interest on a bond is 7% and an inflation premium of 3%. This results in a real rate of interest of 4% on the bond.

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