=+LG 1 E64 Assume that the rate of inflation expected over the coming financial year in India

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=+LG 1 E6–4 Assume that the rate of inflation expected over the coming financial year in India is 6.5%. Explain how a 1-year T- bill could earn a negative real rate of return over the next year. How could it have a zero real rate of return? What minimum nominal rate of return must the T-bill earn to meet an investor’s requirement of a 3% real rate of return?

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Principles Of Managerial Finance

ISBN: 9781292261515

15th Global Edition

Authors: Chad J. Zutter, Scott Smart

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