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9. An investor purchased a 1year Treasury security with a promised yield of 10 percent. The investor expected the annual rate of inflation to be

9. An investor purchased a 1year Treasury security with a promised yield of 10 percent. The investor expected the annual rate of inflation to be 6 percent; however, the actual rate turned out to be 10 percent.

What were the expected and the realized real rates of return for the investor?

Please explain.

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