Suppose the real rate is 3.5 percent and the inflation rate is 5.1 percent. |
What rate would you expect to see on a Treasury bill? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. (e.g., 32.16).) |
r=.035
h=.051
R = (1 + r) * (1 + h) - 1
=(1 + .035) * (1 + .051) -1=0.0878=8.78%
ANSWER :
Rate on treasury bill
= (1 + R)(1 +I) - 1
= (1 + 0.035)(1 + 0.051) - 1
= 0.0878
= 8.78% (ANSWER).
Suppose the real rate is 3.5 percent and the inflation rate is 5.1 percent. What...
Treasury bills are currently paying 5 percent and the inflation rate is 2.7 percent. a. What is the approximate real rate of interest? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the exact real rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Treasury bills are currently paying 6 percent and the inflation rate is 3.4 percent. a. What is the approximate real rate of interest? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the exact real rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Treasury bills are currently paying 5 percent and the inflation rate is 2.5 percent. a. What is the approximate real rate of interest? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the exact real rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % -K a. Approximate real rate b. Exact real rate %
Suppose we have the following Treasury bill returns and inflation rates over an eight- year period: Year WN Treasury Bills 10.45% 11.36 9.06 8.34 8.88 11.23 14.11 15.97 Inflation 12.55% 16.00 10.29 7.97 10.29 12.77 16.98 16.90 00 O a. Calculate the arithmetic average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average...
Suppose we have the following Treasury bill returns and inflation rates over an eight year period: Suppose we have the following Treasury bill returns and inflation rates over an eight year period: Year Treasury Bills Inflation 1 7.70% 9.20% 2 8.46 12.88 3 6.31 7.41 4 5.48 5.24 5 5.89 7.17 6 8.11 9.52 7 11.10 13.84 8 12.70 13.19 a. Calculate the average return for Treasury bills and the average annual inflation rate for this period. (Do not round...
Consider the following table for an eight-year period: Year T-bill return Inflation 1 7.44 % 8.56 % 2 8.79 12.19 3 6.02 6.79 4 5.82 5.01 5 5.60 6.55 6 8.39 8.87 7 10.71 13.14 8 12.85 12.37 Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average return for Treasury...
Please show your work and don't round til the end. Suppose we have the following Treasury bill returns and inflation rates over an eight year peniod: Year Treasury Bills Inflation 9 47% 10.35 8.08 7.15 7.66 9.98 12.83 14.63 11 32% 14.93 9.28 6.81 9.04 11.49 15.67 15.53 a. Calculate the average return for Treasury bills and the average annual inflation rate for this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal...
Suppose the real rate is 7.5 percent and the inflation rate is 3 percent. What rate would you expect to see on a Treasury bill?
Suppose the real rate is 9 percent and the inflation rate is 1.4 percent. What rate would you expect to see on a Treasury bill?
Problem 7-12 Calculating Real Rates of Return [LO4] Treasury bills are currently paying 7 percent and the inflation rate is 3.2 percent. What is the approximate real rate of interest? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Approximate real rate % What is the exact real rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Exact real rate %