A bond that pays interest annually yields a rate of return of 6 percent. The inflation rate
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Question:
A bond that pays interest annually yields a rate of return of 6 percent. The inflation rate for the same period is 2 percent. What is the real rate of return on this bond? Select one: a. 3.92% b. 2.00% c. 8.00% d. 1.04% e. 3.00%
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