# using a BA II calculator.

Please show step by step, how to solve with finance questions with a BA-II calculator

The 2 Questions and Answers are below.

Please show me how to get the answer using a BA II calculator. Please explain steps in simple form:

3. Average inflation

Suppose that the annual expected rates of inflation over each of the next five years are 5 percent, 6 percent, 9 percent, 13 percent, and 12 percent, respectively. What is the average expected rate of inflation over the 5-year period?

Real risk-free rate of interest

4. You read in The Wall Street Journal that 30-day T-bills are currently yielding 8 percent. Your brother-in-law, a broker at Kyoto Securities, has given you the following estimates of current interest rate pre¬miums:

Inflation premium 5%

Liquidity premium 1%

Maturity risk premium 2%

Default risk premium 2%

Based on these data, the real risk-free rate of return is

© BrainMass Inc. brainmass.com June 3, 2020, 9:05 pm ad1c9bdddfhttps://brainmass.com/business/interest-rates/using-a-ba-ii-calculator-165079

#### Solution Preview

3. Average inflation

Suppose that the annual expected rates of inflation over each of the next five years are 5 percent, 6 percent, 9 percent, 13 percent, and 12 percent, respectively. What is the average expected rate of inflation over the 5-year period?

Answer = 9%

You have to find the average expected rate of inflation over ...

#### Solution Summary

This solution is comprised of a detailed explanation to answer how to solve with finance questions with a BA-II calculator.