What is the percentage change in price for a zero coupon bond if the yield changes from 6.5% to 7%? The bond has a face value of $1000 and it matures in 14 years. Use the price determined from the first yield, 6.5%, as the base in the percentage calculation. The percentage change in the bond price if the yield changes from 6.5% to 7% is _______%

Pt 2

If the nominal rate of interest is 13.98% and the real rate of interest is 7.67% , what is the expected rate of inflation?