Multiple Choice
By Marks buys a one-year German government bond (called a bund) for $400.He receives principal and interest totaling $436 one year later.During the year the CPI rose from 150 to 162.The nominal interest rate on the bond was ________,and the real interest rate was ________.
A) 9%; 1%
B) 9%; -1%
C) 36%; 24%
D) 36%; 12%
Correct Answer:
Verified
Correct Answer:
Verified
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