6. (10 marks) The Rate of Return Equality in practice. Consider the following data series from the Federal Reserve Bank of St. Louis (FRED) between Jan 1, 1981 and Jan 1, 2019. Capital Stock at Constant National Prices for United States, Millions of 2017 U.S. Dollars, Annual, Not Seasonally Adjusted (RKNANPUSA666NRUG); Net value added of corporate business: Net operating surplus, Billions of Dollars, An- nual, Not Seasonally Adjusted (W322RC1A027NBEA); Consumer Price Index: Total All Items for the United States, Index 2015=100, Annual, Not Seasonally Adjusted (CPALTTO1USA6615); Long-Term Government Bond Yields: 10-year: Main (Including Benchmark) for the United States, Percent, Annual, Not Seasonally Adjusted (IRLTLTO1USA156N); Consumer Price Index: Total All Items for the United States, Growth Rate Previous Period, Annual, Not Seasonally Adjusted (CPALTTOBUSA657N). (a) Construct the return on capital by using the net operating surplus divided by capital stock. Notice that the data on capital stock is in millions of 2017 U.S. dollars, but the data on net operating surplus is in billions of dollars. Please convert the data series properly to find the return on capital and include your calculated return on capital in your appendix. (b) Construct the real interest rate on long-term government bonds. Notice that the long-term government bond yields are nominal interest rate. Please convert the yields into real interest rates and include your calculated return on government bonds in your appendix. (c) Plot the return on capital that you find in part (a) and the return on government bonds that you find in part (b) in one graph, where the horizontal axis shows the years. Does the rate of return equality hold from your answers in part (a) and part (b)