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:

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Market Competitiveness

The ability of a company or product to compete effectively in the marketplace based on factors like price, quality, and innovation.

Market Access

The conditions and barriers that a company faces when trying to enter a new market or industry, including regulatory, policy, and trade barriers.

Targeting Strategy

An approach businesses use to identify and serve specific segments of the market that are most likely to benefit from their products or services.