If You Expect the Inflation Rate to Be 12 Percent

question 32

Multiple Choice

If you expect the inflation rate to be 12 percent next year and a one-year bond has a yield to maturity of 7 percent,then the real interest rate on this bond is

• A)-5 percent.
• B)-2 percent.
• C)2 percent.
• D)12 percent.

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Definitions:

Structured Interview

Interview conducted by a trained interviewer that has standardized questions based on a job analysis, a specific question order, and a predetermined scoring or answer key.

Predetermined Scale

A scale or series of values that has been established in advance for the purpose of evaluation or measurement.

Prospective Employees

Prospective employees are individuals who are considered potential hires for a company or organization, often in the process of evaluation or interview.

Group Homogeneity

The degree to which members of a group are similar to each other in various aspects, which can affect group dynamics and cohesion.