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If the nominal interest rate is 5% and the expected rate of inflation is 8%, what is the real interest rate? A-3% B. 396 C.

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If the nominal interest rate is 5% and the expected rate of inflation is 8%, what is the real interest rate? A-3% B. 396 C. 5% D.896 QUESTION 4 My friend borrowed $200 from me and paid me back $230 in 1 year. What is the yield to maturity of this simple loan? A 30% B. 20% C. 10% D. 1596

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