What is the real interest rate and inflation premium

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Reference no: EM13685346

Presume that the nominal rate of interest is four percent and the inflation premium is one percent.

1. What is the real interest rate? %?

2. Alternatively, suppose that the real interest rate is 2 percent and the nominal interest rate is 6%.

3. What is the inflation premium? %?

Reference no: EM13685346

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