If a Bond Offers an Investor 11 Percent in Nominal

question 14

Multiple Choice

If a bond offers an investor 11 percent in nominal return during a year in which the rate of inflation was 4 percent, then the investor's real return was:

• A)6.73 percent
• B)7.00 percent
• C)8.75 percent
• D)10.56 percent 1 + real return = 1.11/1.04

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Definitions:

Ion

An atom or molecule with a net electric charge due to the loss or gain of one or more electrons, essential in a wide array of biological processes.

Acetylcholinesterase

Enzyme found in the synaptic cleft that causes the breakdown of acetylcholine to acetic acid and choline, thus limiting the stimulatory effect of acetylcholine.

Acetylcholine

A neurotransmitter involved in many functions including muscle contraction and the transmission of nerve impulses in the central and peripheral nervous system.

Synapse

The junction between two neurons, where electrical or chemical signals are transmitted from one neuron to another.