A bond that pays interest annually yields a rate of return, Ask an Expert

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A bond that pays interest annually yields a rate of return of 7.00 percent. The inflation rate for the same period is 4 percent. What is the real rate of return on this bond?

A) 4.00 percent

B) 1.75 percent

C) 1.03 percent

D) 11.00 percent

E) 2.88 percent

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Financial Management, Finance

Category:- Financial Management
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