Question: 2. The U.S. Treasury issues some bonds as Treasury Inflation Indexed Securities, or TIIS, which are bonds adjusted for inflation; hence the yields can be

2. The U.S. Treasury issues some bonds as Treasury Inflation Indexed

2. The U.S. Treasury issues some bonds as Treasury Inflation Indexed Securities, or TIIS, which are bonds adjusted for inflation; hence the yields can be roughly interpreted as real interest rates. Following the Great Recession of 20082009, the 5, 7, 10, and even the 20-year TIIS yields became negative for a period of time. How is this possible? 3. Assume that you borrow $20,000 to purchase a new automobile and that you finance it with a four-year loan at the interest rate of 4.2%. If you make one payment per year for four years, what will the yearly payment be? What is the total amount that will be paid out on the $20,000 loan

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