Neco Model Questions Vol1 2025 Economics Question 12

Practice objective / multiple choice question 12 from the 2025 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2025 Economics Objective / Multiple Choice Medium Difficulty
Question 12 NECO_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

Two bonds are available. Bond A offers a nominal interest rate of 12% per annum, while Bond B offers 9% per annum. Expected inflation for the next year is 5% for the first six months and 7% for the next six months. Which bond provides the higher real rate of return?

Answer Options

A. Bond B
Correct Answer B. Bond A
C. Neither bond
D. Both bonds
Correct Answer
B
Correct Option:
Bond A

About This Question

This is Neco Model Questions Vol1 2025 Economics Question 12. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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