Post Utme Lasu 2017 Economics Question 28

Practice objective / multiple choice question 28 from the 2017 Post Utme Lasu Economics examination.

Post Utme Lasu 2017 Economics Objective / Multiple Choice
Question 28 POST_UTME_LASU • 2017 • ECONOMICS • objective

A country's inflation rate is 5% per annum, and its nominal interest rate is 8% per annum. If the real interest rate is 3% per annum, what is the expected rate of return on a 3-year bond?

Answer Options

Correct Answer A. \( 1.03^3 \)
B. \( 1.05^3 \)
C. \( 1.08^3 \)
D. \( 1.03 \times 1.08 \)
Correct Answer
A
Correct Option:
\( 1.03^3 \)

About This Question

This is Post Utme Lasu 2017 Economics Question 28. It is one of the objective questions from the 2017 Post Utme Lasu Economics examination.

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