Question
you will receive $100 from a zero-coupon savings bond in 2 years. The nominal interest rate is 8.10%. If the inflation rate over the next
you will receive $100 from a zero-coupon savings bond in 2 years. The nominal interest rate is 8.10%.
If the inflation rate over the next few years is expected to be 3.10%, what will the real value of the $100 payoff be in terms of todays dollars? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
-answer is $94.08..
but my Q is this....
d. Show that the real payoff from the bond [from part (b)] discounted at the real interest rate [from part (c)] gives the same present value for the bond as you found in part (a). (Do not round intermediate calculations. Round your answer to 2 decimal places.)
*present value :
what is present value when real value was $94.08
plz solve this Q
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