You Purchased a Bond One Year Ago for $839

question 258

Multiple Choice

You purchased a bond one year ago for $839.67 and just received the annual coupon of $81. You sell the bond today for $829.31. What is your real return if inflation was 5%?

• A) 3.41%
• B) 6.02%
• C) 6.47%
• D) 9.80%
• E) 10.26%

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Definitions:

Plumbing

The system of pipes, drains, fittings, valves, and fixtures installed for the distribution of water for drinking, heating, and washing, and the removal of waterborne wastes.

Piano

A musical instrument with keys that, when pressed, operate hammers that strike wires to produce sound.

Necessary Condition

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Written notation that represents musical compositions through symbols, including notes and rhythms, intended for performance.