Implied Real Interest Rates. If the nominal interest rate is the government bond rate, and the current

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Implied Real Interest Rates. If the nominal interest rate is the government bond rate, and the current change in consumer prices is used as expected inflation, calculate the implied “real” rates of interest by currency.

a. Australian dollar “real” rate

b. Japanese yen “real” rate

c. U.S. dollar “real” rate

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Multinational Business Finance

ISBN: 9781292270081

15th Global Edition

Authors: David Eiteman, Arthur Stonehill, Michael Moffett

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