Question: please help Question 75 75. Real versus Nominal Rates. You will receive $100 from a savings bond in 3 years. The nominal interest rate is

please help Question 75 75. Real versus Nominal Rates. You will

please help Question 75

75. Real versus Nominal Rates. You will receive $100 from a savings bond in 3 years. The nominal interest rate is 8%. (LOS-5) a What is the present value of the proceeds from the bond? b. If the inflation rate over the next few years is expected to be 3%, what will the real value of the $100 payoff be in terms of today's dollars? c. What is the real interest rate? d. Show that the real payoff from the bond (from part (b)] discounted at the real interest rate (from part (c) gives the same present value for the bond as you found in part (a)

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