In an excel spreadsheet, calculate the real interest rate over the past 24 months (using monthly data) for the 30 year Treasury bond rate as the nominal interest rate and assuming that expected inflation was equal to actual inflation (based on the change in CPI). Make sure to include the Fisher Equation.

Answer rating: 100% (QA)

The Fisher Effect states that the real interest rate equals the nominal interest rate minus the expe... View the full answer