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Suppose you have $ 2 , 2 0 0 and plan to purchase a 1 0 - year certificate of deposit ( CD ) that
Suppose you have $ and plan to purchase a year certificate of deposit CD that pays interest, compounded annually. How much will you have when the CD matures?
a $
b $
c $
d $
e $
Suppose the real riskfree rate is and the future rate of inflation is expected to be constant at What rate of return would you expect on a year Treasury security, assuming the pure expectations theory is valid? Include crossproduct terms, ie if averaging is required, use the geometric average. Round your final answer to decimal places.
a
b
c
d
e
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