You will receive $100 from a savings bond in 4 years. The nominal interest rate is 7.00%.

1. What is the present value of the proceeds from the bond?

   Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

2. If the inflation rate over the next few years is expected to be 2.00%, what will the real value of the $100 payoff be in terms of todays dollars?

   Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

3. What is the real interest rate?

   Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

4. 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 2 decimal places.