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A bond that pays interest annually yields a rate of return of 9.00 percent. The inflation rate for the same period is 2 percent. What

A bond that pays interest annually yields a rate of return of 9.00 percent. The inflation rate for the same period is 2 percent. What is the real rate of return on this bond?

11.00

6.86

2.00

4.50

1.07

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