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A Bond That Pays Interest Annually Yielded 7

Question 40

Multiple Choice

A bond that pays interest annually yielded 7.37 percent last year. The inflation rate for the same period was 2.4 percent. What was the actual real rate of return?


A) 4.19 percent
B) 4.25 percent
C) 4.85 percent
D) 4.41 percent
E) 4.49 percent

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