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

Name: A bond has a nominal rate of return of 5.87% and the inflation rate is 4.13%. What is the approximate real rate? A)1.62% B)1.70% C)1.74% D)1.83% E)1.88%
Brand: Quizplus
Rating: 4.7 (37 reviews)

Question

Quizplus · Accepted Answer

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

A Bond Has a Nominal Rate of Return of 5