During a period of severe inflation, a bond offered a nominal HPR of 79% per year. The inflation rate was 69% per year.

a. What was the real HPR on the bond over the year? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Real HPR ____%?? (**Answer to Real HPR is not 0.06%)

b. Find the approximation rr rn i . (Omit the "%" sign in your response.)

Approximation ____%?? (**Answer to approximation is not 0.10%)