A bond that pays interest annually yields a rate of return


A bond that pays interest annually yields a rate of return of 6.00 percent. The inflation rate for the same period is 2 percent. What is the real rate of return on this bond?

-1.04 percent

3.00 percent

2.00 percent

8.00 percent

3.92 percent

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Financial Management: A bond that pays interest annually yields a rate of return
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