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Investors of government bonds require an 8% per annum real return. The inflation rate (CPI) is 5.50%. What is the exact nominal rate? Select one:

Investors of government bonds require an 8% per annum real return. The inflation rate (CPI) is 5.50%. What is the exact nominal rate?

Select one:

a. 13.94%

b. 10.50%

c. 2.50%

d. 13.50%

e. 12.91%

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