Assume that the rate of inflation expected over the coming financial year in India is 6.5%. Explain

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Assume that the rate of inflation expected over the coming financial year in India is 6.5%. Explain how a 1-year T-bill could earn a negative real rate of return over the next year. How could it have a zero real rate of return? What is the minimum nominal rate of return the T-bill should offer an investor who expects a 3% real rate of return?

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Principles Of Managerial Finance Brief

ISBN: 9781292267142

8th Global Edition

Authors: Chad J. Zutter, Scott B. Smart

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