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9. The interest rate (yield) on Treasury bonds is 4.3% and the expected inflation rate is 1.5%. a. What is the approximate real rate of

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9. The interest rate (yield) on Treasury bonds is 4.3% and the expected inflation rate is 1.5%. a. What is the approximate real rate of interest rate? b. What is the exact real rate of interest rate? 10. The real rate of interest is 2% and expected to stay constant. The table below shows information for two bonds: Years to maturity Expected inflation premium Risk premium Bond A 10 2.4% 2.5% Bond B 20 4% 1.1% a What is the risk-free rate for an investment over 10 years? b. What is the risk-free rate for an investment over 20 years? c. What is the nominal interest rate (or yield to maturity) for bond A? d. What is the nominal interest rate (or yield to maturity) for bond B? e. Based only on the information provided, do you expect the yield curve to be impossible to tell from the data? upward sioping, downward sloping, or

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