Assume a Bond Yields a Real Rate of Return of 3.6

question 62

Multiple Choice

Assume a bond yields a real rate of return of 3.6 percent during a time when inflation is 1.87 percent.What would the actual nominal rate of return be?

• A)5.61%
• B)5.47%
• C)5.49%
• D)5.54%
• E)5.57%

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Definitions:

Simulation

A technique used for experimenting with real-world systems or processes in a virtual environment to study their behavior under various conditions.

Mathematical Equations

Symbolic representations of relationships between variables or quantities that are used to solve problems and express basic principles in numerous disciplines.

Internal Human Resource Supply

Assessment of the current employees' capabilities and potential to meet the future HR needs of an organization.

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The resources or workforce a company hires or acquires from outside its existing operations to fulfill its needs.