Which one of the following rates represents the change,if any,in your purchasing power as a result of owning a bond?

Question

Quizplus · Accepted Answer

The real rate takes into account inflation, which affects purchasing power. Owning a bond with a real rate of return that is less than inflation can result in a decrease in purchasing power, while a real rate of return greater than inflation can result in an increase in purchasing power.

Which One of the Following Rates Represents the Change,if Any,in