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

question 41

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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