. The inflation rate in the coming year is expected to be 2.18%, if an investor wants a real return of 2% after inflation, what is the nominal interest rate that the investor should demand?

Nominal rate the investor should demand _____________

c. An investor purchased a 1-year T-bill that has a nominal rate of 0.08%. If inflation over the year was 1%, what real rate of return did the investor get?

Real Rate of Return the Investor Receives __________