The Yield to Maturity on a Bond Is Currently 8

question 109

Multiple Choice

The yield to maturity on a bond is currently 8.46 percent.The real rate of return is 3.22 percent.What is the rate of inflation?

• A)5.08 percent
• B)5.64 percent
• C)6.24 percent
• D)6.53 percent
• E)6.71 percent

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Definitions:

Ozone

A molecule composed of three oxygen atoms, known for its protective layer in the Earth's stratosphere against harmful ultraviolet radiation.

Acid Rain

Precipitation whose acidity destroys forests and the ecosystems of lakes. It is formed by sulfur dioxide and other gases emitted by coal-burning power plants, pulp and paper mills, and motor-vehicle exhaust.

Precipitation

Any form of water, such as rain, snow, sleet, or hail, that falls from the atmosphere to the Earth's surface.

Genetic Pollution

The uncontrolled spread of genetic information, often as a result of human activities, leading to unwanted alterations in populations or species.