Question: Given the information below estimate the real rate with the
Given the information below, estimate the real rate with the approximation nominal interest rate equation and the true nominal interest rate equation (Fisher effect).
Answer to relevant QuestionsGiven the information below estimate the inflation rate with the approximation formula and the true inflation with the Fisher Effectformula.Is it possible to have promised negative nominal interest rates? Why?If First Federal offers to structure the 9.5%, $100,000, 1 year loan on a monthly payment basis, calculate your monthly payment and the amount of interest paid at the end of the year. What is your EAR?Price the bonds from the above table with annual couponpayments.What are the coupon rates for the bonds listedbelow?
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