The Survey of Professional Forecasters regularly asks a set of forecasters for quantitativeforecasts of key economic variables, including economic growth rates and inflation rates.In the third quarter of 2020, the median forecast for the one-year inflation rate was 1.77%and the median forecast for the 10-year inflation rate was 2.03%. As of early October,2020, the interest rates associated with one-year US government bonds are around 15basis points (0.15%) and interest rates associated with 10-year US government bonds areapproximately 70 basis points. Use the Fisher equation to compute estimates of the realinterest rate at one year and 10-year horizons. Briefly discuss what the results imply for the real return on savings that bond investors are willing to accept. ABC Inc. bonds currently have 10 years to maturity and pay a coupon rate of 4.5% (annualpayments). Assuming the most recent coupon was just paid and the YTM on these bondsequals 6%, determine the current bond price