You are choosing between three 1-year investments: one in Vietnam, one in Thailand, and one in Japan. The investment in Vietnam yields a nominal rate of 13.5% APR compounded monthly, and the monthly inflation in Vietnam is expected to be 0.6%. The investment in Thailand promises a real rate of 6.1% APR compounded daily. The investment in Japan yields a nominal rate of 6.15% APR compounded semi-annually, and the semi-annual inflation in Japan is expected to be 0%. Which investment delivers the highest real rate of return? a) Vietnam: 6.45%; Thailand: 6.55%; Japan: 6.24%; Answer: Thailand b) Vietnam: 6.05%; Thailand: 6.55%; Japan: 6.24%; Answer: Thailand

c) Vietnam: 14.3%; Thailand: 6.1%; Japan: 6.15%; Answer: Vietnam

d) Vietnam: 6.08%; Thailand: 6.1%; Japan: 6.15%; Answer: Japan

e) Vietnam: 6.45%; Thailand: 6.29%; Japan: 6.24%; Answer: Vietnam