You want to own an asset with a real rate of interest of 1 , 3 , an inflation premium that is currently at 5 and a risk premium that is at 1 , 2 What nominal interest rate would you have to earn a 2 , 5 b 3 , 8 c 1 2 , 1 3 d 7 , 5

Question

You want to own an asset with a real rate of interest of 1 , 3   , an inflation premium that is currently at 5   and a risk premium that is at 1 , 2     What nominal interest rate would you have to earn  a   2 , 5   b   3 , 8     c   1 2 , 1 3   d   7 , 5

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Question

You want to own an asset with a real rate of interest of 1 , 3 % , an inflation premium that is currently at

You want to own an asset with a real rate of interest of

$1, 3 %,$ an inflation premium that is currently at $5 %$ and a

risk premium that is at $1, 2 % .$ What nominal interest rate

would you have to earn?

a $. 2, 5 %$

b $. 3, 8 %$ :

c $. 12, 13 %$

d $. 7, 5 %$

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