The Real Return on a Bond That Pays a Fixed

question 22

Multiple Choice

The real return on a bond that pays a fixed interest is equal to

• A)the nominal interest rate plus the rate of inflation
• B)the nominal interest rate divided by the rate of inflation
• C)the nominal interest rate minus the rate of inflation
• D)the nominal interest rate times the rate of inflation
• E)the interest rate that is stated on the bond

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