The outstanding bonds of Roy Thomas, Inc. provide a real rate of return of 2.8...

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Finance

The outstanding bonds of Roy Thomas, Inc. provide a real rate of return of 2.8 percent. The current rate of inflation is 1.7 percent. What is the nominal rate of return on these bonds?

1.05 percent
1.01 percent
4.50 percent
1.10 percent
4.55 percent

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