As per HOMEWORKLIB RULES first question is answered
Kindly ask rest of the questions in a separate post
10.
Market interest rate = risk free interest rate + inflation
Market interest rate = 12 + 3
Market interest rate = 15%
Thus, answer = 15.00
QUESTION 10 The average inflation is 3.0009% per year. The required interest-free interest rate is 12.000%...
there interest rate is 2.7% and the inflation rate is 1.2%, what is the nominal interest rate? Enter you answer as a percentage. Do not enter the percentage sign into your answer. Enter your response below (rounded to 2 decimal places). DR Back Question Menu Submit Assignment | Quit & Save MacBook Air
People anticipate the inflation rate to be 8%. Banks are making loans at a 12% interest rate. Therefore, O A. the real rate of interest is 12% and the nominal rate is 4% OB. the real rate of interest is 12% and the nominal rate is 8% O C. the real rate of interest is 4% and the nominal rate is 12% O D. the real rate of interest is 8% and the nominal rate is -4% You are negotiating...
Please show your work If the real interest rate is 7.3% and the inflation rate is 4.2%, what is the nominal interest rate? Enter you answer as a percentage. Do not enter the percentage sign into your answer Enter your response below (rounded to 2 decimal places)
Inflation rate (percent per year) Pete is a student who spends 10 percent of his expenditure on books and supplies, 30 percent on tuition, 30 percent on rent, 10 percent on food and drink, 10 percent on transportation, and the rest on clothing. The price index for each item was 100 in 2006. The table shows the price indexes in 2016. Item Price index in 2016 Books and supplies 172.6 Tuition 169.0 Rent 159.0 Food and drink 129.8 Transportation 115.4...
b. If the inflation rate is 4.8% per year, what will be the change in the purchasing power of your money over this period? (Use the Rule of 72 to compute the number of years. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. If the inflation rate is 4.8% per year, what will be the change in the purchasing power of your money over this period? (Use the Rule of 72...
If the nominal interest rate is 6.9% and the real interest rate is 5.9%, what is the inflation rate? Enter your answer as a percentage. Do not enter the percentage sign in your answer. Enter your response below (rounded to 2 decimal places).
The real risk-free rate of interest is 3%. Inflation is expected to be 1% this year and 5% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 3-year Treasury securities? Round your answer to two decimal places
The real risk-free rate of interest is 3%. Inflation is expected to be 1% this year and 5% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities? Round your answer to two decimal places.
You observe that the inflation rate in the United States is 1.9 percent per year and that T-bills currently yield 2.4 percent annually. Use the approximate international Fisher effect to answer the following questions. a. What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 4 percent per year? (Enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) b. What do you estimate the inflation rate to be in...
You observe that the inflation rate in the United States is 2.0 percent per year and that T-bills currently yield 2.5 percent annually. a. What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 5 percent per year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Inflation rate % b. What do you estimate the inflation rate to be...