The rate of return on a bond which reflects the increase in buying power achieved by the bond holder is called the _____ rate of return.

Name: The rate of return on a bond which reflects the increase in buying power achieved by the bond holder is called the _____ rate of return.
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Question

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The real rate of return on a bond reflects the increase in buying power achieved by the bond holder, as it takes into account the effects of inflation on the investment's returns.

The Rate of Return on a Bond Which Reflects the Increase