Question
2. Miss Gina buys 182-day treasury bills at the price of GHS8,800 today. She expects to receive GHS10,000 at end of the investment period. Inflation
2. Miss Gina buys 182-day treasury bills at the price of GHS8,800 today. She expects to receive GHS10,000 at end of the investment period. Inflation is expected to be 17% in the coming year.
(a) Compute the holding period return on the investment.
(b) Compute the annualized nominal rate of return on the investment.
(c) Compute the annual real rate of return on the investment.
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
