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A bond that pays interest annually yields a rate of return of 5.75 percent. The inflation rate for the same period is 3 percent. What

A bond that pays interest annually yields a rate of return of 5.75 percent. The inflation rate for the same period is 3 percent. What is the real rate of return on this bond?

1.92 percent

8.75 percent

3.00 percent

2.67 percent

1.03 percent

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