Problemthe nominal rate of return on the bonds of stus, Ask an Expert

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Problem:

The nominal rate of return on the bonds of Stu's Boats is 8.75 percent. The real rate of return is 3.8 percent. What is the rate of inflation?

2.30 percent
4.95 percent
6.28 percent
4.38 percent
4.77 percent

Note: Explain all steps comprehensively.

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