If the rate of inflation is 5.53 %, what nominal interest rate is necessary for you to earn a 2.38% real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.) www. The nominal interest rate needed for your investment is%. (Round to two decimal places.)

If the rate of inflation is 5.53 %, what nominal interest rate is necessary for you to earn a 2.38% real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.) www. The nominal interest rate needed for your investment is%. (Round to two decimal places.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

If the rate of inflation is 4.8%, what nominal interest rate is necessary for you to earn a 2.2% real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.) The nominal interest rate is ____%. (Round to two decimal places.)
If the rate of inflation is 4.6%, what nominal interest rate is necessary for you to earn a 2.2% real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.) The nominal interest rate is%. (Round to two decimal places.) CITS
If the rate of inflation is 5.9%, what nominal interest rate is necessary for you to earn a 2.6% real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.) The nominal interest rate is ______ (Round to two decimal places.)
If the rate of inflation is 5.4%, what nominal interest rate is necessary for you to earn a 3% real interest rate on your investment?(Note: Be careful not to round any intermediate steps less than six decimal places.) The nominal interest rate is_______________ (Round to two decimal places.)
If the rate of inflation is 5.8%, what nominal interest rate is necessary for you to earn a 3.4% real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than six decimal places.) The nominal interest rate is%. (Round to two decimal places.) xample Get more help. AK MacBook Pro or enter website name Clear all Check answes
2. If the current inflation rate is 3.6% and you have an investment opportunity that pays 10.9%, then what is the real rate of interest on your investment? Please use both exact formula and approximate formula.
What would you expect the nominal rate of interest to be if the real rate is 3.8percent and the expected inflation rate is 6.8 percent? The nominal rate of interest would be ______%. (Round to two decimal places.)
5. If the rate of inflation is 6.5%, what nominal interest rate is necessary for you to earn3.3% real interest rate on your investment?
What would you expect the nominal rate of interest to be if the real rate is 2.75% and the expected inflation rate is 13.5%? Use two decimal places – show work.
Find the Effective Interest Rate Note: Final answer should be in percentage value. Round your answer to one decimal place. Example: 12.4%
Assume the nominal interest rate is 12 percent and the expected rate of inflation is 8 percent. Calculate real rate of interest. Now assume instead that the nominal interest rate is 4 percent and the expected rate of inflation is minus 2 percent. Calculate the real rate of interest. Assume the expected rate of inflation is 6 percent per year. What nominal interest rate should you charge to receive a real interest rate of 2 percent per year?
(Inflation and Interest rates) What would you expect the nominal rate of interest to be if the real rate is 4.1 percent and the expected inflation rate is 6.6 percent ? The nominal rate of interest would be ____ % (Round to two decimal places.)

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