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Find nominal annual interest rate

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Assume investors require the same real interest rate of 2.5% per year and annual inflation rate is 3.5% in the U.S. and 1.5% in the U.K. What would be the nominal annual interest rate in the U.S based on Fisher Effect equation? Write your answer as % and keep 2 digits after the decimal point, e.g. X.YZ%

Reference no: EM133068889

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