Based on the inflation rate and the yield to maturity, the real rate of return on the bonds will be 5.23%.
<h3>What is the real rate of return?</h3>
This can be found by the formula:
= (( 1 + nominal Return) / ( 1 + Inflation rate)) - 1
Solving gives:
= ( ( 1 + 8.0%) / ( 1 + 8.90%)) - 1
= 1.0523 - 1
= 5.23%
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Standard of living includes GROSS DOMESTIC PRODUCTS, which can be bought and sold.
GDP is one of the factors of standard living. However, it is not a strong indicator of the quality of life an individual is living.
The answer to the blank space is discriminative stimuli.
A discriminative stimulus means that this thing differs from the others – and thus the person who perceives it will be more likely to be attracted to it. Buy one get one deals are essentially this type of stimulus since people are more likely to gravitate to it than other deals because they believe they will get a better deal by choosing to purchase the item.
