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The nominal risk free rate is equal to 10%. The inflation rate is 2%. At t = 0 a hamburger costs $1. Consider the following
The nominal risk free rate is equal to 10%. The inflation rate is 2%. At t = 0 a hamburger costs $1.
Consider the following desired consumption stream:
At t = 30 you want to eat 5,000 hamburgers. Then you want to consume 4% more hamburgers until t = 50, and then 5% more hamburgers until t = 66.
Given this scenario, I need to determine using the nominal approach to calculating PV of the cash flows the value of N if I were writing out the equation
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