Refer to the diagram to the right where a nominal interest rate (the 6month annualized Treasury rate) and the rate of inflation are plotted. In which of the three decades (197079,198089,199099) is the inflation rate the most stable? The inflation rate is most stable during the In which of the three decades does the economy experience disinflation? Disinflation is experienced during the In which of the three decades is the real interest rate, on average, the highest? On average, the real interest rate is highest during the How much would you pay for a perpetual bond that pays an annual coupon of $100 per year and yields on competing instruments are 10% ? You would pay \$ (Round your response to the nearest penny) If competing yields are expected to change to 15%, what is the current yield on this same bond assuming that you paid $1,000 ? The current yield is \%. (Round your response to the nearest integer.) If you sell this bond in exactly one year, having paid $1,000, and received exactly one coupon payment, what is your total return if competing yields are 15% ? Your total return is \%: (Round your response to two decimal places)