A bond that pays interest annually yields a rate of return


A bond that pays interest annually yields a rate of return of 9.50 percent. The inflation rate for the same period is 3 percent. What is the real rate of return on this bond?

1.06 percent

12.50 percent

3.00 percent

6.31 percent

3.17 percent

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