If you had owned a ten-year Treasury bond from 2000 to 2009, what would have been your real rate of return?
A)0)1%
B)0)9%
C)1)9%
D)2)6%
E)6)2%

Question

Quizplus · Accepted Answer

The real rate of return is calculated by adjusting the nominal return for inflation. During 2000-2009, the average nominal return on a ten-year Treasury bond was approximately 4.5%, and the average inflation rate was around 2.6%, resulting in a real rate of return of about 1.9%.

If You Had Owned a Ten-Year Treasury Bond from 2000