You observe that the inflation rate in Canada is 2.4% per year and that T-bills currently yield
Question:
You observe that the inflation rate in Canada is 2.4% per year and that T-bills currently yield 2.9% annually.
a. What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 9% per year? (Round the final answer to 1 decimal place.)
Inflation rate %
b. What do you estimate the inflation rate to be in the United States, if short-term U.S. government securities yield 12% per year? (Round the final answer to 1 decimal place.)
Inflation rate %
c. What do you estimate the inflation rate to be in Taiwan, if short-term Taiwanese government securities yield 14% per year? (Round the final answer to 1 decimal place.)
Inflation rate %
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford