A measure of real interest rates can be approximated by the interest rate on inflation-protected long-term Canada bonds, or Real Return Bonds. Go to the CANSIM database, and find monthly data from January 1992 to August 2017 on the long-term Real Return Bond (series V122553) and the (all items) Consumer Price Index (CPI), a measure of the price index (series V41690914). Convert the price index data to annualized inflation rates by taking the month-to-month percent change in the price index and multiplying it by 12.

Be sure to multiply by 100 so that your results are percentages.

a. Calculate the average inflation rate and the average real interest rate over the most recent 12 months of data available.

b. Calculate the standard deviation of the real interest rate and the annualized inflation rate over the most recent 12 months of data available.