Solved

In January 2008, You Purchased a Financial Instrument with a Nominal

Question 158

Short Answer

In January 2008, you purchased a financial instrument with a nominal interest rate of 2.75% per year. At the time, the consumer price index was 212.17. By January 2009, the consumer price index went to 211.93. What was your real rate of interest?

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q148: What is Nicaragua's GDP deflator if its

Q149: The table shows nominal GDP data

Q150: (Table: Peanut Butter and Jelly Prices)

Q151: You can hedge against inflation by investing

Q152: The producer price index is regarded as

Q153: Suppose the basket of goods that you

Q154: The consumer price index is an index

Q155: The CPI changes from 100 to 90.

Q156: The real interest rate is the:<br>A)stated interest

Q157: The table shows consumer price index