Real interest rate = combined rate - inflation rate
= 10 - 2.1 = 7.9%
Real interest rate = 7.90%
What is the real interest rate if the combined rate is 10% and the inflation is...
Assume the real rate of interest is 3.00% and the inflation rate is 3.00%. What is the value today of receiving 14,863.00 in 14.00 years? Submit Answer format: Currency: Round to: 2 decimal places.
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Suppose the real interest rate is 2.8%, and the inflation rate is 7%. (1) How much do you need to invest now in order to get $100 in a year? Please show two approaches to calculate the answers. (Round your final answer to two decimal places) (2) Suppose the U.S. Treasury issues 5% coupon, 3-year TIPS (Treasury Inflation-Protected Securities). What are the real cash flows on the 3-year TIPS each year? What are the nominal cash flows on the 3-years...