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The nominal interest rate is 2% and the expected inflation rate is 7%. Based on the Fisher effect, the real rate of interest is 4.9%.
The nominal interest rate is 2% and the expected inflation rate is 7%. Based on the Fisher effect, the real rate of interest is
| 4.9%. | ||
| - 4.67%. | ||
| 5.1%. | ||
| 9.14%. |
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Financial Management Principles And Applications
Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.
10th Edition
0131450654, 9780131450653
