A bond has a nominal rate of return of 5.87 percent and the inflation rate is 4.13 percent.What is the approximate real rate?
A) 1.62 percent
B) 1.70 percent
C) 1.74 percent
D) 1.83 percent
E) 1.88 percent

Name: A bond has a nominal rate of return of 5.87 percent and the inflation rate is 4.13 percent.What is the approximate real rate? A) 1.62 percent B) 1.70 percent C) 1.74 percent D) 1.83 percent E) 1.88 percent
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Question

Quizplus · Accepted Answer

Approximate real rate = .0587 - .0413 = 1.74 percent

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