QUESTION $7$

The real rate is $2\mathrm{.}8$ percent and the nominal rate is $7\mathrm{.}9$ percent. What is the expected inflation premium? Please use the exact $($multiplicative$)$ formulation.

A$.2\mathrm{.}63\%$

B$.3\mathrm{.}40\%$

C$.4\mathrm{.}18\%$

D$.4\mathrm{.}96\%$

E$.5\mathrm{.}74\%$

F$.6\mathrm{.}52\%$

G$.7\mathrm{.}30\%$

H$.8\mathrm{.}07\%$