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A Bond That Pays Interest Annually Yields a Rate of Return

Question 47

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%

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