What is the real rate of return on this bond

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Reference no: EM13808310

A bond that pays interest annually yields a rate of return of 7.25 percent. The inflation rate for the same period is 3 percent. What is the real rate of return on this bond?

a) 10.25 percent

b) 4.13 percent

c) 2.42 percent

d) 1.04 percent

e) 3.00 percent

Reference no: EM13808310

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