Industrial Bank of China is earning a nominal yuan return of 7.1 percent on a commercial loan.

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Industrial Bank of China is earning a nominal yuan return of 7.1 percent on a commercial loan. Expected inflation in CNY is 5 percent. What is the expected real return in yuan? (Be precise.)

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Multinational Finance

ISBN: 9781405181181

4th Edition

Authors: Kirt C. Butler

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Question Posted: Mar 14, 2024 02:01 AM

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Industrial Bank of China is earning a nominal yuan return of 7.1 percent on a commercial loan.

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Heres the formula Real interest rate 1 Nominal rate 1 Inflation rate 1 Inputting the values Nomina...View the full answer

Multinational Finance

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