The increase you realize in buying power as a result of owning a bond is referred to as the _____ rate of return.

Question

Quizplus · Accepted Answer

The increase in buying power as a result of owning a bond is referred to as the real rate of return, which takes into account inflation. The nominal rate of return is the stated rate of return on the bond, while the realized rate of return is the actual rate of return earned after accounting for any fees or taxes. The risk-free rate of return is the rate of return on an investment that has no risk, such as a U.S. Treasury bond.

The Increase You Realize in Buying Power as a Result