An investor purchased a 1-year Treasury security with a promised yield of 10 percent.The investor expected the

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An investor purchased a 1-year Treasury security with a promised yield of 10 percent.The investor expected the annual rate of inflation to be 6 percent; however, the actual rate turned out to be 10 percent.What were the expected and the realized real rate of interest for the investor?

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Financial Institutions, Markets and Money

ISBN: 978-1119330363

12th edition

Authors: David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard W. Sias

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