The expected inflation rate is 26.5%. If the current real rate of interest is 21%, what should the nominal rate of interest be? Use two decimal places – show work.
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The expected inflation rate is 26.5%. If the current real rate of interest is 21%, what should the nominal rate of interest be? Use two decimal places – show work.
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- 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.)The annual inflation rate is expected to be 4.78% and the nominal (annual) interest rate is 5.75%. What is the real interest rate?The expected inflation rate is 8%. If the current real rate of interest is 4%, what should the nominal rate of interest be? Use two decimal places – show work
- You observe a nominal rate of 5.48% at the same time you learn that the inflation rate is 2.68%. What is the real rate, given this information?If Treasury bills are currently paying 3.05 percent and the inflation rate is 1.89 percent, what is the approximate real rate of interest? The exact real rate? Can the calculator and excel solution be provided?Suppose we observe the 3-year Treasury security rate (1R3) to be 8 percent, the expected 1-year rate next year—E(2r1)—to be 4 percent, and the expected one-year rate the following year—E(3r1)—to be 6 percent. If the unbiased expectations theory of the term structure of interest rates holds, what is the 1-year Treasury security rate, 1R1? (Round your answer to 2 decimal places.)
- What exact real rate of return is implied by a nominal return of 6% and an inflation rate of 2.4% over the same time period?(please write answer in a decimal format using 5 decimal places)What would you expect the nominal rate of interest to be if the real rate is 5.3 percent and the expected inflation rate is 2.8 percent?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.
- If the annual interest rate is 8%, what is the daily interest rate that would be used as the "r" in the time value of money equation? Hint: the equation uses the decimal equivalent of the percent Enter your answer to four decimal places.Question #21 is attacthed below in image. Based on the spot rates in Problem 21, and assuming a constant real interest rate of 2 percent, what are the expected inflation rates for the next four years?If the annual interest rate is 7%, what is the monthly interest rate that would be used as the "r" in the time value of money equation? Hint: the equation uses the decimal equivalent of the percent Enter your answer to four decimal places.