Question: An analyst is evaluating securities in developing nation where the inflation rate is very high. As a result, the analyst has been warned not to
An analyst is evaluating securities in developing nation where the inflation rate is very high. As a result, the analyst has been warned not to the cross product between the real rate and inflation. A 6- year security with rematurty, default or liquidity risk asyld of 20.919. the realisererate is 7%, what were increded in this country over the next years? (st: Refer to "The Links Between Expected Inflation and Interest Rates: A Closer Look") Do not round Intermediate clations. Round your answer to the nearest whole number eBook An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore the cross product between the real rate and inflation. A year security with no maturity, default, or liquidity risk has a yield of 20,91%. If the real risk-free rate is 7%, what average rate of inflation is expected in this country over the next 6 years) (Hint: Refer to "The Links Between Expected Inflation and Interest Rates: A Closer Look) Do not round Intermediate calculations. Round your answer to the nearest whole number
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