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A bond that pays interest annually yields a rate of return of 10.00 percent. The inflation rate for the same period is 4 percent. What

A bond that pays interest annually yields a rate of return of 10.00 percent. The inflation rate for the same period is 4 percent. What is the real rate of return on this bond?

4.00 percent

5.77 percent

1.06 percent

14.00 percent

2.50 percent

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