Bond that pays interest annually yields a rate of return

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A bond that pays interest annually yields a rate of return of 8.00 percent. The inflation rate for the same period is 3 percent. What is the real rate of return on this bond?

a. 11.00 percent b. 2.67 percent c. 1.05 percent d. 3.00 percent e. 4.85 percent

Reference no: EM13911552

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