What would you expect a nominal rate of interest to be if the real rate is 3.9% and the expected inflation rate is 7.4%?

9) A project costs $3000 immediately. The project yields nominalreturns of $100 in year 1, $200 in year 2, $300 in year 3, $400 inyear 4, and $500 in year 5. In addition, the project will havecapital worth $2500 (in nominal $) left over in year 5. The realdiscount rate is 7% and the expected inflation rate is 3%. What isthe NPV of this project? 10)You have $2000 to invest, and arechoosing between two projects, both of which cost $2000 up frontand will yield six years of returns. The returns for the firstinvestment will be paid in nominal $, starting at $400 a year fromnow and increasing at 8% annually. The returns for the second willbe paid in real $, starting at $500 and increasing at 2% annually.If your real hurdle rate is 4.5% and the expected inflation rate is3.1%, which of these investments should you choose (if any)?

Interest rates that include an inflation premium are referred to as:

A. annual percentage rates.

B. stripped rates.

C. effective annual rates.

D. real rates.

E. nominal rates.

If Treasury bills are currently paying 5.1 percent and theinflation rate is 2.2 percent, what is the approximate real rate ofinterest? The exact real rate? Settlement date? Maturity date?Annual coupon rate? Coupons per year? face value (% of par)? bondprice (% of par)?