Roy's Welding's Bond Has an Annual Rate of Return of 5.97

question 4

Multiple Choice

Roy's Welding's bond has an annual rate of return of 5.97 percent and a face value of $1,000.The current rate of inflation is 3.02 percent.What is the real rate of return on these bonds?

• A)3)31%
• B)2)86%
• C)3)09%
• D)3)48%
• E)2)94%

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Definitions:

Coherent

Logically connected and consistent, making it easy to understand.

Culture

The ideas, customs, social behaviors, and artifacts of a particular society, group, place, or time.

Logical

Pertaining to or characterized by clear, sound reasoning and coherent thought.

Ethnocentrism

Assessing a foreign culture purely through the lens of one's own cultural norms and values.