Assume a Bond Yields a Real Rate of Return of 3.6

Multiple Choice

Assume a bond yields a real rate of return of 3.6 percent during a time when inflation is 1.87 percent.What would the actual nominal rate of return be?

A) 5.61%
B) 5.46%
C) 5.49%
D) 5.54%
E) 5.57%