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Hy Marks buys a one-year government bond on January 1, 2018, for $500.00. He receives principal plus interest totaling $510.00 on January 1, 2019. Suppose
Hy Marks buys a one-year government bond on January 1, 2018, for $500.00. He receives principal plus interest totaling $510.00 on January 1, 2019. Suppose that the CPI is 200.0 on January 1, 2018, and 206.0 on January 1, 2019. This increase in prices is different than Hy had anticipated; his guess was that the CPI would be at 200.0 by the beginning of 2019. The nominal interest rate is \"A. (Enter your answer as a percentage rounded to one decimal place.) The actual ination rate is "A. (Enter your answer as a percentage rounded to one decimal place.) The real interest rate is \". (Enter your answer as a percentage rounded to one decimal place.) Hy's expected ination rate was "/9. (EMS! your answer as a percentage rounded to one decimal place.) Hy's expected real interest rate was \"A. (Enter your answer as a percentage rounded to one decimal place.)
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