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1. The table below shows the yield to maturity of the one-year treasury bill, and the level of the CPI [Consumer Price Index: an index

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1. The table below shows the yield to maturity of the one-year treasury bill, and the level of the CPI [Consumer Price Index: an index or average of price level for the economy] as of January 1, 2006 and 2007. It also shows the percentage changes over the course of the year 2006. | 1 yr. bill | CPI Jan 07 5.06% 202.4 | Jan 06 4.45% 198.3 | % change 13.7% 2.1% If an investor purchased a one-year bill January 1, 2006 and held it until maturity January 1, 2007, a. What nominal return did she realize? b. What real return did she realize

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