mathxl.com Fall 2017-HPU-FIN 3000 A-Business Finance-Chang Liu Carissa Hudgins 102517 9:25 AM Homework: Module 5 - Interest Rates and Bond Valuation Save Score: 0 of 1 pt 1 of 20(14 complete) Hw Score: 65%, 13 of 20 pt P6-1 (similar to) Question Help Interest rate fundamentals: The real rate of return Carl Foster, a trainee at an investment banking firm, is trying to get an idea of what real rate of retum investors are expecting in today's marketplace. He has looked up the rate paid on 3 ont us Treasury b sand found it to be 9%. He has ded to use the t of change in the Consumer Price Index as a proxy for the inflationary expectations of investors. That annualized rate now stands at 25% On the basis ofthe information that Carl has collected, what estimate can he make of the real rate of return? The estimate of the real rate of return is%. (Round to one decimal place )