Computation of actual nominal rate of return on the bond

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Computation of actual nominal rate of return on the bond

A bond produces a real rate of return of 5.03 percent for a time period when the inflation rate is 3.30 percent. What is the actual
nominal rate of return on the bond?

a. 8.33 percent
b. 8.42 percent
c. 8.50 percent
d. 8.55 percent
e. 8.68 percent

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