60.1K

Verified Solution

Link Copied!

Country is for Japan

4 6.1 In class rates activity 21) Determine the prevailing 2-year interest rate of the Australian dollar (AUD), assuming a real interest rate (r) of 2%. 3 Simplified Fisher effect formula: nominal rate of interest = real rate + inflation rate i=r+ Overview bie US, UK Germany Japan Austria 5 Nominal Australia 2-year yield (1) https://www.bls hent-bonds/australia 6 Real interest rate (r) = 2.00% assumed in the Government Bond Yields 7 Exp implied inflation (pl) -2.000% deflation 8 9 10 11 Repeat this process for the country in your group project. 12 132) Find the current inflation rate. Assuming the current rate will be equal to the future expected 14 Inflation rate. What is the expected real rate of return for savers next year? 15 16 According to the Fisher equation:/ur+pl ir + 17 What is the real expected return r? 18 Current inflation for AUS(p) - https://tradingecond- Tate?continente australia 19 Real expected return:r-i-pl 0.00% per year 20 21 Repeat this process for the country in your group project Gender INA DONG RA WA 4 6.1 In class rates activity 21) Determine the prevailing 2-year interest rate of the Australian dollar (AUD), assuming a real interest rate (r) of 2%. 3 Simplified Fisher effect formula: nominal rate of interest = real rate + inflation rate i=r+ Overview bie US, UK Germany Japan Austria 5 Nominal Australia 2-year yield (1) https://www.bls hent-bonds/australia 6 Real interest rate (r) = 2.00% assumed in the Government Bond Yields 7 Exp implied inflation (pl) -2.000% deflation 8 9 10 11 Repeat this process for the country in your group project. 12 132) Find the current inflation rate. Assuming the current rate will be equal to the future expected 14 Inflation rate. What is the expected real rate of return for savers next year? 15 16 According to the Fisher equation:/ur+pl ir + 17 What is the real expected return r? 18 Current inflation for AUS(p) - https://tradingecond- Tate?continente australia 19 Real expected return:r-i-pl 0.00% per year 20 21 Repeat this process for the country in your group project Gender INA DONG RA WA

Answer & Explanation Solved by verified expert

See Answer