Question

. In an excel spreadsheet, calculate the real interest rate over the past 24 months (using...

. In an excel spreadsheet, calculate the real interest rate over the past 24 months (using monthly data) for the 30 year Treasury bond rate as the nominal interest rate and assuming that expected inflation was equal to actual inflation (based on the change in CPI). Make sure to include the Fisher Equation

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Using the exact Fisher equation, the nominal rate of interest on a bond with a real...
Using the exact Fisher equation, the nominal rate of interest on a bond with a real rate of 8.9% p.a. and expected inflation of 2.6% p.a. is closest to (in percentage to nearest two decimal places; do not use the percentage sign eg 2.881% is 2.88): Answer:
If the nominal interest rate is 3.8 percent, and the real interest rate is 2.0 percent,...
If the nominal interest rate is 3.8 percent, and the real interest rate is 2.0 percent, then using the Fisher Equation, the expected inflation must be _______
Suppose that the nominal rate of interest is 5% and the expected rate of inflation is...
Suppose that the nominal rate of interest is 5% and the expected rate of inflation is 2%. Whats is the expected real rate of interest according to Fisher? Calculate the after-tax expected real rate of assuming a 30% marginal tax rate. If inflation expectations increase by 2%, what will be the new nominal rate according to fisher? According to darby/feldstein? What should happen to bond prices and stock prices if the expected rate of inflation increase
Over the next year, the real interest rate is 2% and the expected inflation rate is...
Over the next year, the real interest rate is 2% and the expected inflation rate is 5%. A. What is the nominal interest rate on a one-year loan? B. Assume that the actual inflation rate turns out to be 3%, instead of 5%. • Who benefits, the lender or the borrower? • What is the realized real interest rate on this loan?
Use the following Taylor rule to calculate what would happen to the real interest rate if...
Use the following Taylor rule to calculate what would happen to the real interest rate if inflation increased by 5 percentage points. Target federal funds rate = Natural rate of interest + Current inflation + 1/2(Inflation gap) + 1/2(Output gap) If inflation goes up by 5 percentage points, the target (nominal) federal funds rate goes up by ? percentage points (? percentage points due to the direct impact of inflation and another ? percentage points due to an increase in...
Use the following Taylor rule to calculate what would happen to the real interest rate if...
Use the following Taylor rule to calculate what would happen to the real interest rate if inflation increased by 1 percentage points. Target federal funds rate = Natural rate of interest + Current inflation + 1/2(Inflation gap) + 1/2(Output gap) Instructions: Enter your responses rounded to one decimal place. If inflation goes up by 1 percentage points, the target (nominal) federal funds rate goes up by ? percentage points ( ? percentage points due to the direct impact of inflation...
Use the following Taylor rule to calculate what would happen to the real interest rate if...
Use the following Taylor rule to calculate what would happen to the real interest rate if inflation increased by 1 percentage points. Target federal funds rate = 2 + Current inflation + 1/2 (Inflation gap) + 1/2(Output gap) If inflation goes up by 1 percentage points, the target federal funds rate goes up by ___ percentage points ( ___ percentage points due to the direct impact of inflation and another __ percentage points due to an increase in the inflation...
PLEASE SHOW ON EXCEL The real risk-free rate of interest is 4%. Inflation is expected to...
PLEASE SHOW ON EXCEL The real risk-free rate of interest is 4%. Inflation is expected to be 2% this year and 4% during each of the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities? What is the yield on 3-year Treasury securities? I can do this by hand, but I am wondering the easiest way to do it on excel. Should I use nominal function? Thanks!
The real rate of interest of a risk free bond is equal to: a The nominal...
The real rate of interest of a risk free bond is equal to: a The nominal interest rate minus the premium for expected inflation b The nominal interest rate plus the risk premium c The nominal interest rate minus the risk premium d The nominal interest rate plus a plus the premium for expected inflation
Use Excel to find the solution to the following problems... Suppose the real risk free rate...
Use Excel to find the solution to the following problems... Suppose the real risk free rate of interest is 3%. Inflation is expected to be 5% for 4 years and then 7% thereafter. The maturity risk premium is 0.1%(t), where t is the number of years until maturity. The default risk premium is 3%. The liquidity premium is 1%. What is the nominal interest rate on a 6 year bond? Assume the yield on a 6 year treasury bond is...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT