Mr. A Marks buys a one-year government bond on May18, 2013, for Rs 500; He receives principal plus?
... interest totaling Rs545 on May18, 2014. Suppose CPI is Rs 200 on May18, 2013, and Rs 214 on May18, 2014. This increase in prices is more than Mr.
... interest totaling Rs545 on May18, 2014. Suppose CPI is Rs 200 on May18, 2013, and Rs 214 on May18, 2014. This increase in prices is more than Mr. A had anticipated; his guess was that the CPI would be at Rs 210 by the beginning, of 2013: Find nominal interest rate, inflation rate, and Mr. A expected inflation rate, and Mr. A expected real interest rate
or:... interest totaling Rs545 on May18, 2014. Suppose CPI is Rs 200 on May18, 2013, and Rs 214 on May18, 2014. This increase in prices is more than Mr. A had anticipated; his guess was that the CPI would be at Rs 210 by the beginning, of 2013: Find nominal interest rate, inflation rate, and Mr. A expected inflation rate, and Mr. A expected real interest rate
