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Answer the full question. Explain answers and show work. Current inflation in Germany is measured at 11.6%, in the UK8.8%, in France 6%. in the
Answer the full question. Explain answers and show work.
Current inflation in Germany is measured at 11.6%, in the UK8.8%, in France 6%. in the US 8.2% Current European Central Bank rate is 2%. Federal Reserve rate is 3%. Bank of England rate is 2.25%. What is the nominal rate of return and real rate of return on the following assets? (a) A German 2-year bond pays a yearly return of 1.91%. (b) The 2019 Chteau Lafite Rothschild wine is currently valued at $1,096 a bottle as of June 2022, up from $536 in the same period last year. (c) A 10,000 deposit in a London bank in a year when the interest rate on pounds is 5.5% percent and the exchange rate moves from $1.37 per pound to $1.16 per pound. Current inflation in Germany is measured at 11.6%, in the UK8.8%, in France 6%. in the US 8.2% Current European Central Bank rate is 2%. Federal Reserve rate is 3%. Bank of England rate is 2.25%. What is the nominal rate of return and real rate of return on the following assets? (a) A German 2-year bond pays a yearly return of 1.91%. (b) The 2019 Chteau Lafite Rothschild wine is currently valued at $1,096 a bottle as of June 2022, up from $536 in the same period last year. (c) A 10,000 deposit in a London bank in a year when the interest rate on pounds is 5.5% percent and the exchange rate moves from $1.37 per pound to $1.16 per poundStep by Step Solution
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