22.6 The real interest rate in the United States is 1.041/1.035-1 = .0058, or 0.58%. If the...
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22.6 The real interest rate in the United States is 1.041/1.035-1 = .0058, or 0.58%. If the real rate is the same in South Korea, then expected inflation must be (1 + nominal rate)/(1 + real rate) 11.036/1.0058 1.0300 = 3.00%.
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780073382302
6th Edition
Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus
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