Determine the nominal rate of return

Reference no: EM1347591

A bond yielded a real rate of return of 3.85 percent for a time period when the inflation rate was 1.97 percent. What was the actual nominal rate of return?
Answer
6.75 percent
8.40 percent
6.35 percent
5.90 percent
7.05 percent

Reference no: EM1347591

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