A bond that pays interest annually yielded 650 percent last


A bond that pays interest annually yielded 6.50 percent last year. The inflation rate for the same period was 5.50 percent. What was the real rate of return?

1.00 percent

.95 percent

1.06 percent

5.50 percent

5.56 percent

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Financial Management: A bond that pays interest annually yielded 650 percent last
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