Question: Assume you lend $10.000 for a five (5) year period. The current the real rate at the time you lend the money is 2.3%. You
Assume you lend $10.000 for a five (5) year period. The current the real rate at the time you lend the money is 2.3%. You charge no risk premium on the loan. At the end of the 5-years loan period you receive back your $10.00 and then decide to determine your actual realized rate of return on the loan. You collect the following information for your calculation. Using the Fisher Equation, what is your realized rate of return on the loan
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