A financial analyst has the following data:
Inflation premium (IP) = 5.25%
Real, risk-free rate, r* = 3.2%
According to this information, what is the inflation rate?
A) 2.0525%
B) 5.0872%
C) 3.9570%
D) 4.7500%
E) 6.2500%
Correct Answer:
Verified
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