Exhibit 1-5
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $\begin{array}{l}\text {Canadian T-bils } &2.75 \% \\\text {Canadian corporate bonds } &4.75 \%\end{array}$

question 51

Multiple Choice

Exhibit 1-5
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
Assume that during the past year the consumer price index increased by 1.5% percent and the securities listed below returned the following nominal rates of return.
$\begin{array}{l}\text {Canadian T-bils } &2.75 \% \\\text {Canadian corporate bonds } &4.75 \%\end{array}$
-Refer to Exhibit 1-5. If next year the real rates all rise by 10% while inflation climbs from 1.5% to 2.5%, what will be the nominal rate of return on each security?

• A) 1.24% and 1.52%
• B) 1.35% and 3.52%
• C) 3.89% and 6.11%
• D) 3.52% and 3.89%
• E) 1.17% and 6.11%

---

Definitions:

Abolitionism

The movement aimed at ending slavery and the slave trade.

Hostile Audiences

Groups of individuals who are antagonistic, skeptical, or disagreeable towards the speaker or the message being presented.

Colonization Movement

A campaign in the 18th and 19th centuries aimed at resettling free Black Americans in Africa; the most well-known effort resulted in the establishment of Liberia.

Black Abolitionists

African American leaders and activists who played a significant role in the movement to end slavery in the United States before and during the Civil War.