0-5 (Silla ) Nominal interest rates and yield curves Economic forecasters predict that the rate of inflation will hold steady at 2% per year indefinitely. The table, shows the nominal interest rate paid on the Treasury securities maturities a. Approximately what real interest rate do Treasury securities offer investors at each maturity b. If the nominal rate of interest paid by every Treasury security suddenly dropped by 0.5% without any change in inflationary expectations, what effect, if any, would this have on your answers in parta? c. Using your findings in part a, select the appropriate yield curve for U.S. Treasury secures Describe the general shape and expectations reflected by the curve d. What would a follower of the liquidity preference theory say about how the preferences offenders and borrowers tend to affect the shape of the yield curve in parte? e. What would a follower of the market segmentation theory say about the supply and demand for long term loans versus the supply and demand for short-term loans given the yield Curve in parte? a. The real rate of interest on the 3-month U.S. Treasury belix Round to one decimal place.) Data Table (Click on the loon located on the top right comer of the datatable below in order to copy is contes into a spreadsheet) Nominal rate of Maturity return 3 months 2 years 7 5 years 8 8.5 10 years 20 years 9 Print Done Enter your answer in the answer box and then click Check Answer Clear Al parts remaining