Question

ou observe that the inflation rate in the United States is 2.7 percent per year and that T-bills currently yield 3.2 percent annually. a. What do you estimate the inflation rate to be in Australia, if short-term Australian government securities yield 5 percent per year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Inflation rate % b. What do you estimate the inflation rate to be in Canada, if short-term Canadian government securities yield 8 percent per year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Inflation rate % c. What do you estimate the inflation rate to be in Taiwan, if short-term Taiwanese government securities yield 10 percent per year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Inflation rate %

Answer 1