8. Getty Markets has bonds outstanding that have a real return of 3.08 percent. The current rate of inflation is 3.1 percent. What is the nominal rate of return on these bonds?
6.28% Please Show All work
The formulae is below:
(1+nominal rate)=(1+Real return)*(1+inflation)
Real return=3.08% and inflation=3.1%
Nominal rate=((1+3.08%)*(1+3.1%))-1
=6.28%
8. Getty Markets has bonds outstanding that have a real return of 3.08 percent. The current...
1. Getty Markets has bonds outstanding that have a real return of 3.08 percent. The current rate of inflation is 3.1 percent. What is the nominal rate of return on these bonds? 6.28% Please show all work typed as I can't see much on mobile.
Getty Markets has bonds outstanding that have a real return of 3.08 percent. The current rate of inflation is 3.1 percent. What is the nominal rate of return on these bonds? Please show work.
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