You purchased a five-year 6% annual coupon bond one year ago for $990. You sold the bond today when the market rate of return is 4.5%. If the inflation rate for the past year was 2.0%, what nominal
Rate of return did you earn on this investment?
A) 7.07%
B) 8.16%
C) 10.30%
D) 11.67%
E) 12.51%
Correct Answer:
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