A Bond Had a Nominal Return of 14 Percent Last

question 37

Multiple Choice

A bond had a nominal return of 14 percent last year and the inflation rate was 4.6 percent. What was the approximate real return?

• A) 18.6%
• B) 14.0%
• C) 13.2.%
• D) 9.4%
• E) 10.6%

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Definitions:

Sales Price

The actual price at which an item or service is sold to the public, often after discounts or promotions are applied.

List Price

The advertised or published price of a product before any discounts or allowances are taken into account.

Inventory

Inventory refers to the total amount of goods and materials held by a business for the purpose of resale or production.

Slope-intercept Form

An equation of a straight line in the format y = mx + b, where m is the slope and b is the y-intercept.