Question
One-year Treasury bill rates in 20XX averaged 5.15% and inflation for the year was 7.3%. If investors expected the same inflation rate as observed, calculate
One-year Treasury bill rates in 20XX averaged 5.15% and inflation for the year was 7.3%. If investors expected the same inflation rate as observed, calculate the real interest rate for 20XX based on the Fisher effect.
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Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
9781118800720, 1118492676, 1118800729, 978-1118492673
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