Question
Option1.The nominal interest rate is 2.6% in one year. Inflation over the same period was -2.6%. Option 1 Calculates the effective interest rate for the
Option1.The nominal interest rate is 2.6% in one year. Inflation over the same period was -2.6%. Option 1 Calculates the effective interest rate for the same period, in %. Please round to 4 decimal places. Do not put "%" or "=" in your answer. Example input "3.0000" means 0.0300 (=3%), omit "%". Enter numeric values only.
Option 2. assumes a normal yield curve. in view of Original corporate bond yield = 6.56%, Raw yield spread between corporate bonds and government bonds = 0.51%. Inflation is now expected to change by 0.16%, Find the new yield on government bonds, in %, based on the Fisher effect. 30 Round to 4 decimal places. Do not put "%" or "=" in your answer. Enter "3.0000" for 0.0300 (=3%), omit "%". Enter numeric values only.
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