Can nominal interest rate available to investor be negative

Assignment Help Financial Management

Reference no: EM131498063

Can the nominal interest rate available to an investor be negative? (Hint: Consider the interest rate earned from saving cash "under the mattress.")

A. The nominal interest rate can never be negative because the inflation rate is always negative.

B. The nominal interest rate can be negative when the inflation rate is positive.

C. The nominal interest rate can never be negative because investors can always earn? 0% on their investments.

D. The nominal interest rate can be negative when the real rate of interest is negative.

Reference no: EM131498063

Questions Cloud

Determine the profit-loss on one bluefish put option : Determine the profit/loss on one Bluefish put option if at the option's expiration the stock price is $55.

Treasury sold a series of bonds that had negative yields : In 2010, the U.S. Treasury sold a series of bonds (known as TIPS) that had negative yields.

Determine the profit and loss to writer of the call option : Determine the profit/loss to the WRITER of the call option if at the time of expiration the stock price is $63.

What is the profit or loss on call just prior to expiration : What is the profit or loss on the call just prior to expiration if the stock price is $108?

Can nominal interest rate available to investor be negative : Can the nominal interest rate available to an investor be negative?

How much are you willing to pay for this stock today : You anticipate that XSensors Co. will pay a constant dividend of $2.61 each year for the next 10 years. How much are you willing to pay for this stock today?

How much money will bickel recieve for the euros : How much money will Bickel recieve for the euros?

You willing to pay today to buy one share of this stock : How much are you willing to pay today to buy one share of this stock if your required rate of return is 11.7 percent?

The discount curve in quarterly intervals : the discount curve in quarterly intervals out to 12 months is

User Account

All Pages