4. The information below is extracted from a recent edition of Bloomberg. Bloomberg Sign In Europe, Middle East & Africa 10-Year Government Bond Yields COUNTRY YIELD 1 DAY 1 MONTH 1 YEAR TIN Germany -0.63% -1 -14 -24 United Kingdom >> 0.17% -1 -1 -54 1 France -0.34% +O -12 -26 1 Italy 0.71% +6 -25 -21 1 Spain 0.16% +4 -12 -8 Netherlands -0.53% -1 -14 -27 1 Portugal 0.14% +3 -16 -6 1 Greece 0.81% +3 -26 -49 Switzerland -0.59% +O -6 +5 Referring to the table above, answer the following questions: a) What are the yields for the 10-year government bond of Germany and Italy? b) Germany and Italy have the same central bank and the same currency, however their bond yields, as indicated above, are different. How can this be? What is your explanation? c) Assume that the CPI for the two countries named above- Germany and Italy- for 2019 and 2020 are as follows: Italy: CPL2020 = 98.73, CPL2019 =100 Germany: CPI 2020 =100.84, CPI 2019 = 100 d) Given this information, calculate the real interest rates in these two countries and comment on your answers. (10 marks) 4. The information below is extracted from a recent edition of Bloomberg. Bloomberg Sign In Europe, Middle East & Africa 10-Year Government Bond Yields COUNTRY YIELD 1 DAY 1 MONTH 1 YEAR TIN Germany -0.63% -1 -14 -24 United Kingdom >> 0.17% -1 -1 -54 1 France -0.34% +O -12 -26 1 Italy 0.71% +6 -25 -21 1 Spain 0.16% +4 -12 -8 Netherlands -0.53% -1 -14 -27 1 Portugal 0.14% +3 -16 -6 1 Greece 0.81% +3 -26 -49 Switzerland -0.59% +O -6 +5 Referring to the table above, answer the following questions: a) What are the yields for the 10-year government bond of Germany and Italy? b) Germany and Italy have the same central bank and the same currency, however their bond yields, as indicated above, are different. How can this be? What is your explanation? c) Assume that the CPI for the two countries named above- Germany and Italy- for 2019 and 2020 are as follows: Italy: CPL2020 = 98.73, CPL2019 =100 Germany: CPI 2020 =100.84, CPI 2019 = 100 d) Given this information, calculate the real interest rates in these two countries and comment on your answers. (10 marks)