The rate of return on a bond which reflects the increase in buying power achieved by the bond holder is called the _____ rate of return.

A) Inflated.
B) Nominal.
C) Adjusted.
D) Real.
E) compounded

Real Rate

The inflation-adjusted interest rate, representing the actual cost of borrowing or the genuine return on an investment.

Buying Power

The amount of goods or services that can be purchased with a unit of currency or by consumers, reflecting the value of money.