Please see attached Inflation, nominal interest rates, and real rates. Given the following information, E, estimate the real rate with the approximate nominal interest rate equation andthe true nominal interest rate equation (Fisher effect) for each set of nominal and inflation rates.First, fill in the approximate real interest rate in the following table: (Round to two decimal places.)ApproximateNominal RateInflation RateReal Rate13.0%6.5%%9.0%3.0%%20.0%15.0%%5.0%8.0%%Next, fill in the true real interest rate in the following table: (Round to two decimal places.)TrueNominal RateInflation RateReal Rate13.0%6.5%7%9.0%3.0%%%%20.0%15.0%5.0%8.0% i Data Table(Click on the following icon a in order to copy its contents into a spreadsheet.)ApproximateTrueNominal RateInflation RateReal RateReal Rate13.0%6.5%?9.0%3.0%??20.0%15.0%5.0%8.0%

The computation of Approximate Real rate as follows: Approximate Real Rate = Nominal Rate -…

Inflation, nominal interest rates, and real rates. Given the following information, . estimate the real rate with the approximate nominal interest rate equation and the true nominal interest rate equation (Fisher effect) for each set of nominal and inflation rates. First, fill in the approximate real interest rate in the following table: (Round to two decimal places.)

Inflation, nominal interest rates, and real rates. Given the following information, . estimate the real rate with the approximate nominal interest rate equation and the true nominal interest rate equation (Fisher effect) for each set of nominal and inflation rates. First, fill in the approximate real interest rate in the following table: (Round to two decimal places.)

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 2EP

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