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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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    https://brainmass.com/business/bond-valuation/purchasing-power-increase-on-junk-bond-investment-434932

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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 ...

    Solution Summary

    Solution discusses purchasing power increase on junk bond investment

    $2.19

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