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If the Nominal Rate of Return on a Bond Is

question 9

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If the nominal rate of return on a bond is 8.59 percent and the real rate is 3.87 percent,what is the rate of inflation?

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Definitions:

Payee

A person to whom money is paid.

Electronic Funds Transfer System

A digital system that allows the transfer of money between accounts without the physical exchange of cash.

Debiting Accounts

The financial process of recording or entering an amount owed as a debt in an account, increasing the balance of that account.

Without Checks

Operating or proceeding without restrictions or controls, potentially leading to errors or issues.

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