203k views
0 votes
If you want to increase your purchasing power by investing in a bond, then: _____________

a. you must purchase that bond at a discount.
b. the nominal rate of return on that bond must be less than the inflation rate.
c. you should purchase a premium bond.
d. the nominal rate of return must equal or exceed the rate of inflation.
e. you must earn a positive real rate of return on that bond.

User Ronald
by
7.7k points

1 Answer

3 votes

Answer:

b. the nominal rate of return on that bond must be less than the inflation rate

User Eileen Tao
by
9.2k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.