Nominal Interest rates and yleld curves Economic forecasters predict that the rate of inflation will hold steady at 25% per year indefinitely. The table. shows the nominal interest rate paid on the Treasury securities having different maturities a. Approximately what real interest rate do Treasury securities offer investors at each maturity? b. If the nominal tate of interest paid by every Treasury security suddenly dropped by 15% without any change in inflationary expectations, what effectif any, would this have on your answers in parta? C. Using your findings in part a select the appropriate yield curve for US Treasury securities Describe the general shape and expectations reflected by the curve d. What would a follower of the liquidity preference theory say about how the preferences of lenders and borrowers tend to affect the shape of the yield curve in part e. What would a follower of the market segmentation theory say about the supply and demand for long-term loans versus the supply and demand for short-term loans given the yield curve in part c? c? a. The real tate of interest on the 3 month US Treasury bill is I (Round to one decimal place) est rate paid on the Treasury securities having different maturities Xons, w Teal inter interes wers in pa in part a er of the Data Table Jations ape oft d dema er of the part c? (Click on the icon here in order to copy the contents of the data table below into a spreadsheet) Nominal rate of return 5% Period 3 months erest on the 2 years 6 6.5 5 years 10 years 20 years 8.5 10 Print Done