The Nominal Rate of Return on a Bond Is 7

question 9

Multiple Choice

The nominal rate of return on a bond is 7.28 percent while the real rate is 3.09 percent.What is the rate of inflation?

• A)4.06 percent
• B)4.28 percent
• C)4.09 percent
• D)4.13 percent
• E)4.17 percent

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Definitions:

Shadowing

A method of learning or training in which a person closely follows and observes a professional at work to gain knowledge and understanding of a particular job or task.

Emergent Numeracy

Knowledge, skills, and attitudes that provide the building blocks for learning how to do math.

Building Blocks

Fundamental elements or concepts used as the foundation for something, often referred to in the context of child development or construction.

Math

A field of study that deals with numbers, quantities, shapes, and the relationships between them, using symbols and rules to perform operations.