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a and b please!! thank you so much You would like to invest $22,000 for a year in a risk-free investment. A conventional certificate of
a and b please!! thank you so much
You would like to invest $22,000 for a year in a risk-free investment. A conventional certificate of deposit (CD) offers a 5.4% annual rate of return. You are also considering an "Inflation-Plus" CD which offers a real rate of return of 2.3% regardless of the inflation rate. a. What is the implied (expected) Inflation rate? (Round your answer to 2 decimal places.) Implied inflation rate % b. You decide to invest $11,000 in the conventional CD and $11,000 in the "Inflation Plus" CD. What is your expected dollar value at the end of the year? Expected value Step by Step Solution
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