Question

Suppose the inflation rate in Canada, as measured by the CPI, has been averaging 3.5 percent in recent years. The most recent Bank of Canada announcement indicates that it expects 3-percent inflation over the next year. If the real rate of return on Canadian T-bills is 1.5 percent, what is the nominal risk-free rate?



$1.99
Sales0
Views57
Comments0
  • CreatedFebruary 25, 2015
  • Files Included
Post your question
5000