You are expecting next year the real interest rate and, Ask an Expert

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You are expecting next year the real interest rate and inflation rate to be 3% and 2%, respectively. When you deposit money in the bank, what should be the annual interest rate?

If instead you want to invest in bonds and you need an 8% risk premium based on the rating, what would be your required return rate on this bond?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92830242

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