What is the real rate of interest if the nominal rate of interest is 15%, the IP is 3%, the DRP is 3%, the MRP is 3%, and the LP is 2%? Thank you in advance! I'm new to this concept!
nominal interest rate = real interest rate + inflation premium + default risk premium + maturity risk premium + liquidity premium
15% = real interest rate + 3% + 3% + 3% + 2%
real rate of interest = 4%
What is the real rate of interest if the nominal rate of interest is 15%, the...