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Purchasing power increase on junk bond investment

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Your financial advisor tells you that you can earn 15% this year on a junk-bond investment. You anticipate that the inflation rate will be 2.8% over the same year. By how much will your purchasing power increase?

11.87%
7.95%
8.46%
1.12%
9.56%

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Your financial advisor tells you that you can earn 15% this year on a junk-bond investment. You anticipate that the ...

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Solution discusses purchasing power increase on junk bond investment

$2.19