Question: For this problem you can use US real zero-coupon yields from Federal Reserve Board website: https://www.federalreserve.gov/pubs/feds/2008/200805/200805abs. html (choose Data - Excel file). a) (1 point)

For this problem you can use US real zero-coupon yields from Federal Reserve Board website:

https://www.federalreserve.gov/pubs/feds/2008/200805/200805abs. html (choose Data - Excel file).

a) (1 point) What is the price of a 3 year zero-coupon US government real bond with the (real) face value of $1,000 issued on January 24, 2011 on its issuance day?

b) (1 point) Suppose you buy a real bond from part a) on January 24, 2011, hold it for exactly 1 year until January 24, 2012 and then sell it. How many dollars did you make or lose from this investment?

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