Fiona buys a one-year German government bond (called a bund) for $400. She receives principal and interest

totaling $436 one year later. During the year the CPI rose from 150 to 162. The nominal interest rate on the bond

was ____, and the real interest rate was ____.

a. 9%; 1%

b. 9%; -1%

c. 36%; 24%

d. 36%; 12%

e. None of the above