Suppose that you buy a 1-year maturity bond with a coupon of 7% paid annually. If you buy the bond at its face value, what real rate of return will you earn if the inflation rate is 4%

the real rate of return is 2.88%

Explanation:

The computation of the real rate of return is shown below:

As we know that

Real rate of return is

= {(1 + nominal rate of return) ÷ (1 - inflation rate)} - 1

= {(1 + 0.07) ÷ (1 + 0.04)} - 1

= 2.88%

Hence, the real rate of return is 2.88%

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

answer; i believe that the correct answer is ; (a) customer demand for the

the specific actions take by the fed. what the fed was attempting to do by taking these actions. the result of the actions taken by the fed