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Question 18 1 points Save Answer Due to the integrated nature of their capital markets,...

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Question 18 1 points Save Answer Due to the integrated nature of their capital markets, investors in both the US and UK require the same real interest rate, but we do not know that rate. We do know the nominal (bank) rate of interest is 4.0% in the US dollar. In addition, there is a consensus in the capital markets that the annual inflation rate is likely to be 3.0% in the US, and annual inflation is likely to be 2.0% in the UK in the next year. What is the nominal (bank) rate of interest in the UK pound? Note: Use the approximate" form of the appropriate equation. 1% 294 3% 4% {

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