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Author Question: The real rate of interest over the next two years is expected to remain at 2% per annum. Inflation ... (Read 69 times)

elizabeth18

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on: Apr 25, 2021

Question 1

The real rate of interest is 2% and the expected inflation rate is 2%. What is the nominal rate of interest?
◦ 2.02%
◦ 3.04%
◦ 4.00%
◦ 4.04%
◦ 4.24%

Question 2

The real rate of interest over the next two years is expected to remain at 2% per annum. Inflation is expected to be 1.5% per annum over the next two years. At the last auction, 2-year T-Notes were priced to yield 4%. What is the maturity risk premium for two year maturities? (Assume that the T-Notes have no liquidity risk.)
◦ 0.40%
◦ 0.43%
◦ 0.45%
◦ 0.47%
◦ 0.50%
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Marked as best answer by elizabeth18 on Apr 25, 2021

parker125

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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elizabeth18

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Reply 2 on: Apr 25, 2021
Excellent

olderstudent

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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