A Bond Has a Nominal Rate of Return of 5

question 65

Multiple Choice

A bond has a nominal rate of return of 5.87 percent and the inflation rate is 4.13 percent.What is the approximate real rate?

• A) 1.62 percent
• B) 1.70 percent
• C) 1.74 percent
• D) 1.83 percent
• E) 1.88 percent

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Definitions:

Analogue

A person or thing seen as comparable to another, or a process in which non-digital signals behave similar to variable quantities.

Language Deprivation

A lack of adequate exposure to language during the critical period of language acquisition, leading to deficits in language and cognitive development.

Correlational Method

A research strategy used to examine the relationship between variables, without implying causation.

Experimental Method

A scientific approach to research in which variables are manipulated to observe their effect on other variables, allowing for determination of cause-and-effect relationships.