Suppose the real rate is 2.8 percent and the inflation rate is 3.4 percent.

Required:

What rate would you expect to see on a Treasury bill? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Rate

%

Locate the Treasury issue in Figure 6.3 maturing in August 2029. Assume a par value of $1,000.

Requirement 1:

What is its coupon rate? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.161).)

Coupon rate

%

Requirement 2:

What is its bid price in dollars? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.1616).)

Bid price

$

Requirement 3:

What was the previous days asked price in dollars? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g., 32.1616).)

Asked price

$