1-Calculate time in years from 5. 6. 2010 to 31. 8. 2018 using 1. a) European...

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1-Calculate time in years from 5. 6. 2010 to 31. 8. 2018 using 1. a) European standard 30E/360; 2. b) American standard 30A/360; 3. c) ACT/360; 4. d) ACT/365; 5. e) ACT/ACT. Use function YEARFRAC() in MS Excel. The variants a) and b) try to calculate without MS Excel too. 2-Nominal interest rate is equal 3 % p.a. and real interest rate is equal 2,7 % p.a. Calculate the value of rate of inflation. Use 6. f) Fischer equation (simplified relationship); 7. g) exact relationship. 3.: Which factors affect the interest rate? 4.: What is meant volatility of the interest rate? 1-Calculate time in years from 5. 6. 2010 to 31. 8. 2018 using 1. a) European standard 30E/360; 2. b) American standard 30A/360; 3. c) ACT/360; 4. d) ACT/365; 5. e) ACT/ACT. Use function YEARFRAC() in MS Excel. The variants a) and b) try to calculate without MS Excel too. 2-Nominal interest rate is equal 3 % p.a. and real interest rate is equal 2,7 % p.a. Calculate the value of rate of inflation. Use 6. f) Fischer equation (simplified relationship); 7. g) exact relationship. 3.: Which factors affect the interest rate? 4.: What is meant volatility of the interest rate?

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1 Calculation of time in years from 5 6 2010 to 31 8 2018 using different day count conventions a European standard 30E360 Using the 30E360 day count convention the calculation assumes that each month ... View the full answer