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Suppose that for the coming year, the inflation is forecast at an effective annual rate of 1.27%. If a bank offers a high interest rate
Suppose that for the coming year, the inflation is forecast at an effective annual rate of 1.27%. If a bank offers a high interest rate saving account at an effective annual rate i=1.83%, what is the corresponding real, or inflation adjusted rate of interest for the coming year
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Investments
Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey
6th Edition
8120321014, 978-8120321014
