What is the minimum nominal rate of return you should accept if you require a 6% real rate of return and the rate of inflation is expected to average 5.50% during the investment period?

a. 11.50%
b. 11.83%
c. 11.67%
d. 12.00%

Ans: b. 11.83%

Business

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Of the following three types of corporate bonds debentures, mortgage bonds, and subordinated debentures indicate the most secure and the least secure (in that order)

A) debentures, subordinated debentures B) mortgage bonds, subordinated debentures C) subordinated debentures, debentures D) mortgage bonds, debentures

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