A Bond Has a Yield to Maturity of 8

question 65

Multiple Choice

A bond has a yield to maturity of 8.97 percent. If the inflation rate is 1.2 percent, what is the real rate of return on the bond?

• A) 8.97 percent
• B) 7.90 percent
• C) 7.57 percent
• D) 7.68 percent
• E) 7.95 percent

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