Multiple Choice
Jack Simmons is expecting to earn a 0.34% return on his investment in a government bond that matures next year. If the inflation rate during the time of maturity is expected to be 7%, what will be the real rate of return from his investment?
A) 6.64%
B) - 3.36%
C) - 6.22%
D) 25%
Correct Answer:
Verified
Correct Answer:
Verified
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