Assume the following in excel: Cell A1= nominal rate; Cell A2 = real rate; Cell A3 =
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Assume the following in excel: Cell A1= nominal rate; Cell A2 = real rate; Cell A3 = inflation premium, Cell A4 = default premium; Cell A5 = maturity premium. According to our Chapter 5 coverage of interest rates the correct formula for the real rate would be ______ and for the nominal rate would be ______
a. A1-A3; Sum(A2:A3)
b. Sum (A1:A3); A1+A2
c. A3-A2; Sum(A1:A5)
d. Sum (A3:A5); Sum (A4:A5) - Sum (A2:A3)
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