If the Risk-free rate equals 5.7%, the Nominal interest rate is 9.42% and the Real rate...
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If the Risk-free rate equals 5.7%, the Nominal interest rate is 9.42% and the Real rate of interest is 2.15%, then the Expected inflation rate must equal______ %. Round your answer to two decimals and enter your answer as a percentage number, for example, if your answer is 5.24% enter 5.24 only. Question 2 After watching the financial news in CNBC, you have learned that currently the Risk Premium for a treasury bond is 4.28%. If the Risk-free rate is 6.76%, the expected inflation equals 2.9%, then the Nominal interest rate for this bond must equal _%. Round your answer to two decimals and enter your answer as a percentage number, for example, if your answer is 8.37% enter 8.37 only. If the Risk-free rate equals 5.7%, the Nominal interest rate is 9.42% and the Real rate of interest is 2.15%, then the Expected inflation rate must equal______ %. Round your answer to two decimals and enter your answer as a percentage number, for example, if your answer is 5.24% enter 5.24 only. Question 2 After watching the financial news in CNBC, you have learned that currently the Risk Premium for a treasury bond is 4.28%. If the Risk-free rate is 6.76%, the expected inflation equals 2.9%, then the Nominal interest rate for this bond must equal _%. Round your answer to two decimals and enter your answer as a percentage number, for example, if your answer is 8.37% enter 8.37 only.
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Question 1 The Fisher equation relates the nominal interest r... View the full answer
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