You observe that the inflation rate in Canada is 2.6 percent per year and that T-bills currently

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You observe that the inflation rate in Canada is 2.6 percent per year and that T-bills currently yield 3.4 percent annually. What do you estimate the inflation rate to be in:

a. Australia, if short-term Australian government securities yield 4 percent per year?

b. The United States, if short-term U.S. government securities yield 7 percent per year?

c. Taiwan, if short-term Taiwanese government securities yield 9 percent per year?

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Related Book For  answer-question

Fundamentals of Corporate Finance

ISBN: 978-0071051606

8th Canadian Edition

Authors: Stephen A. Ross, Randolph W. Westerfield

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