A Treasury note with a maturity of four years carries a nominal rate of interest of 10 percent. In


A Treasury music delay a manliness of filthy years carries a nominal admonish of profit of 10 percent. In dissimilarity, an eight-year Treasury bond has a furnish of 8 percent. a. If inflation is expected to mean 7 percent aggravate the leading filthy years, what is the expected existent admonish of profit? b. If the inflation admonish is expected to be 5 percent for the leading year, count the mean annual admonish of inflation for years 2 through 4.