Real and nominal rates interest Zane Perell currently has 5104 that he can spend today on polo shirts costing $26 ench. Alternatively, he could invest the $104 in a risk free US Treasury security that is expected to earn a 11% nominal rate of interest. The consensus forecast of leading economists is a 6% rate of inflation over the coming year, a How many polo shirts can Zane purchase today? 6. How much money wil Zane have at the end of 1 year if he forgoes purchasing the polo shirts today? (ignore taxes.) d. Use your findings in parts band e to determine how many polo shirts (fractions are OK) Zane can purchase at the end of 1 year. In percentage terms, how many more or fewer polo shirts .. What is Zano's roa/ rate of return over the year? How is it related to the percentage change in Zane's buying power found in part d? Explain a. The number of polo shirts Zane can purchase today's shirts. (Round to the nearest whole number) b. The amount of money Zane will have at the end of 1 year it he forgot purchasing the polo shirts today is so 6. The expected price of the polo shirts at the end of a year in light of the expected Imation is s. (Round to the nearest cent) d. Using your findings in parts b and e, the number of polo shirts Zane can purchase at the end of 1 year is shit. (Round to four decimal places.) in percentage terme, the more or fewer polo shirts Zano con buy at the end of 1 year % (Round to the nearest whole percent) .. Zano's real rate of rotum over the year is % (Round to the nearest whole percent) (Round to the nearest cent.) How is the real rate of retum related to the percentage change in Zane's buying power found in part d? (Select from the drop-down menu The change in the number of shirts that can be purchased in equal to the since the portion of the nominal return for expected inflation is used to maintain the aboty to purchase the same number of thirts real rate of return risk premium Inflation premium nominal rate of retum