Assuming the Same Coupon Rate and Maturity Length, When the Interest

question 32

Multiple Choice

Assuming the same coupon rate and maturity length, when the interest rate on a Real Return Bond is 3 percent, and the yield on a nonindexed Canada bond is 8 percent, the expected rate of inflation is ________.

• A) 3 percent
• B) 5 percent
• C) 8 percent
• D) 11 percent

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