A Bond Investment Yielded 8

question 21

Multiple Choice

A bond investment yielded 8%. If inflation was 3%, what real return did the bond offer? Round your answer to the nearest tenth of a percent.

• A)+4.9%
• B)+5.2%
• C)+1.0%
• D)-4.6%

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Definitions:

Proliferate

To increase rapidly in numbers; multiply.

Infancy

The period in a human's life from birth to the age of two, characterized by rapid growth and development.

Adulthood

A developmental stage characterized by full physical growth, maturity, and the assumption of adult roles and responsibilities.

Cerebral Hemisphere

The cerebral hemispheres are the two halves of the brain, responsible for controlling opposite sides of the body and different aspects of cognitive processing.