Question: Determine what the real interest rates are in the following

Determine what the real interest rates are in the following countries, given their nominal interest rates and inflation rates:
Canada: inflation is 4.5%, and the nominal risk-free interest rate is 6.0%.
Switzerland: inflation is 1.25%, and the nominal risk-free interest rate is 3.75%.
United States: inflation is 3%, and the nominal risk-free interest rate is 4.50%.


View Solution:


Sale on SolutionInn
Sales0
Views128
Comments
  • CreatedMay 08, 2014
  • Files Included
Post your question
5000