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What the real interest rate on the bond is

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Reference no: EM132945121

Problem 1: If you expect the inflation rate to be 15 percent next year and a one-year bond has a yield to maturity of 7 percent, then the real interest rate on this bond is

Select one:

a. 7 percent.
b. 22 percent.
c. -15 percent.
d. -8 percent.
e. none of the above.

Reference no: EM132945121

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