A bond that pays interest annually yields a rate of return of 7.75 percent. The inflation rate
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Question:
A bond that pays interest annually yields a rate of return of 7.75 percent. The inflation rate for the same period is 4 percent. What is the real rate of return on this bond? |
1.94 percent | |
4.00 percent | |
3.61 percent | |
11.75 percent | |
1.04 percent |
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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