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Business, 21.02.2020 16:58 lbabineaux9887

By Marks buys a one-year German government bond (called a bund) for $400. He receives principal and interest totaling $436 one year later. During the year the CPI rose from 150 to 162. The nominal interest rate on the bond was , and the real interest rate was .

A. 9%; -1%
B. 9%; 1%
C. 36%; 12%
D. 36%; 24%

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By Marks buys a one-year German government bond (called a bund) for $400. He receives principal and...

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