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The table below shows the yield to maturity of the one - year TIP, one - year treasury bill, and the level of the CPI
The table below shows the yield to maturity of the oneyear TIP, oneyear treasury bill, and the level of the CPI Consumer Price Index: an index or "average" of price level for the economy as of January and
a What was the TIPS spread on Jan On Jan.
b If an investor purchased a oneyear bill January and held it until maturity january what nominal yield did she realize?
c What was the inflation rate for the year of
d If an investor purchased a oneyear bill January and held it until maturity January what real yield did she realize?
e If the investor believed the market data available when she bought the Tbill Jan. what nominal yield would she have been expecting to get?
f If the investor believed the market data available when she bought the Tbill Jan. what real yield would she have been expecting to get?
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