What the real interest rate on this bond

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Question - 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 what the real interest rate on this bond?

a. 7 percent.

b. 22 percent.

c. -15 percent.

d. -8 percent.

e. none of the above.

Reference no: EM133035982

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