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You will receive $ 1 0 0 from a savings bond in 2 years. The nominal interest rate is 7 . 1 0 % .
You will receive $ from a savings bond in years. The nominal interest rate is
a What is the present value of the proceeds from the bond?
Note: Do not round intermediate calculations. Round your answer to decimal places.
b If the inflation rate over the next few years is expected to be what will the real value of the $ payoff be in terms of
today's dollars?
Note: Do not round intermediate calculations. Round your answer to decimal places.
c What is the real interest rate?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
d Calculate the real payoff from the bond from part b discounted at the real interest rate from part c
Note: Do not round intermediate calculations. Round your answer to decimal places.
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