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9) You lend 100 to a borrower today for five years. Given that the 5-yr expected inflation rate is 1.8%, how much must your proceeds
9) You lend 100 to a borrower today for five years. Given that the 5-yr expected inflation rate is 1.8%, how much must your proceeds be just to break even?
10) If the 5-yr real spot interest rate is 1.5%, what is the nominal 5-yr spot rate?
11) If, instead, you know the 5-yr nominal rate to be 4%, what is the expected 5-yr inflation rate?
12) Inflation over the past five years has averaged 1.25%. If the 5-yr nominal rate is 4%, what is the expected 5-yr inflation rate?
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