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:

Cultural Pluralism

A concept or policy that promotes the respect, acceptance, and preservation of different cultural identities within a society, allowing for diverse traditions and customs to coexist.

Internalized Sanctions

Penalties or social controls that individuals impose upon themselves, often as a result of socialization, to conform to societal norms or laws.

Genocide

The deliberate and systematic extermination of an ethnic, racial, national, or religious group, aiming to destroy its members in whole or part.

Hutus and Tutsis

Ethnic groups primarily associated with Rwanda and Burundi, historically intertwined and affected by colonial history and conflict.