Multiple Choice
A bond that pays interest annually yields a rate of return of 7.25 percent.The inflation rate for the same period is 2.31 percent.What is the actual real rate of return on this bond?
A) 4.79%
B) 4.87%
C) 4.83%
D) 4.94%
E) 4.91%
Correct Answer:

Verified
Correct Answer:
Verified
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