An investor purchasing an inflation-protected bond with a fixed annual real return of 1.75 percent will earn a nominal annual return of ______ percent if the actual inflation rate turns out to be 3.25 percent.
A)1.50%
B)1.86%
C)5.00%
D)5.69%

Question

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The Answer of An investor purchasing an inflation-protected bond with a fixed annual real return of 1.75 percent will earn a nominal annual return of ______ percent if the actual inflation rate turns out to be 3.25 percent.
A)1.50%
B)1.86%
C)5.00%
D)5.69%

An Investor Purchasing an Inflation-Protected Bond with a Fixed Annual