Using the following information, determine the real rate of interest: Rate % inflation 0.53 T-bill 5.00 10y T-Bond 6.00 10y AAA Corporate 6.41 10y AA Corporate 7.52 note: your answer should be to 2 decimal places. So, if your answer is 3.253%, for example, then enter 3.25 without the percent sign.
Using the following information, determine the real rate of interest: Rate % inflation 0.53 T-bill 5.00 10y T-Bond 6.00 10y AAA Corporate 6.41 10y AA Corporate 7.52 note: your answer should be to 2 decimal places. So, if your answer is 3.253%, for example, then enter 3.25 without the percent sign.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Using the following information, determine the real rate of interest:
| Rate | % |
| inflation | 0.53 |
| T-bill | 5.00 |
| 10y T-Bond | 6.00 |
| 10y AAA Corporate | 6.41 |
| 10y AA Corporate |
7.52 |
note: your answer should be to 2 decimal places. So, if your answer is 3.253%, for example, then enter 3.25 without the percent sign.
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