A bond yielded a real rate of return of 3.87 percent for a time period when the inflation rate was 3.75 percent. What was the actual nominal rate of return?

A. 87.58 percent
B. 7.62 percent
C. 7.77 percent
D. 8.28 percent
E. .36 percent

Answer: C. 7.77 percent

Business

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