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Nominal interest rates and yleld curves Economic forecasters predict that the rate of infation wil nold ateady at 2.5% per yoar indefinitely. The tacle. shows

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Nominal interest rates and yleld curves Economic forecasters predict that the rate of infation wil nold ateady at 2.5% per yoar indefinitely. The tacle. shows the nominat interest rate paid on the Treasury socurties having different truhurites. a. Approvimately what real interest rate do Treanury securities offer investon at each matunily? b. If the nominal rate of interest paid by every Treasury secunity suddenly dropped by 1.5% without any change in infasonary eupectations, what effect, if any, would ahis have on your answers in part a ? c. Using your findings in part a, select the appropriate yield curve for U.S. Treasury securties. Describe the general shape and ersectations reflocted by the ourve. a. The real rate of interest on the 3-month U.S. Treasury bill is 4. (Round to one decimal place) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.)

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