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A Bond That Pays Interest Annually Yielded 7

Question 17

Multiple Choice

A bond that pays interest annually yielded 7.47 percent last year.The inflation rate for the same period was 4 percent.What was the actual real rate of return on this bond for last year?


A) 2.19 percent
B) 2.25 percent
C) 3.34 percent
D) 3.41 percent
E) 3.49 percent

Correct Answer:

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