Given the anticipated rate of inflation (i) of 2.13% and the real rate of interest (R) of 3.1%, find the nominal rate
of interest (r).
What will be an ideal response?
r = R + i + Ri
r = .031 + .0213 + (.031 )(.0213 )
r = .0523 + .0006603
r = .05296 = 5.3%
Business
You might also like to view...
________ are the rights of shareholders who object to a proposed merger to have their shares valued by the court and receive cash payment of this value from the corporation
A) Appraisal rights B) Liquidation rights C) Anti-acquisition rights D) Anti-merger rights
Business
Securities dealers
A) hold inventories of securities, which they sell to customers who want to buy. B) hold securities that they have purchased from customers who wanted to sell. C) are called market takers, as they have significantly cut into the market that brokers used to dominate. D) do all of the above. E) do only A and B of the above.
Business