Question: Please Solve Step by step on paper 16.19. A five-year U.S. Treasury note is purchased for $10,000 and pays 7% interest ($700) each year for

Please Solve Step by step on paper

16.19. A five-year U.S. Treasury note is purchased for $10,000 and pays 7% interest ($700) each year for five years. At the end of year 5, in addition to the interest. the $10.000 original payment is returned. Inflation is expected to be 3% per year for the five-year period. Neglecting taxes, what is the nominal and real rate of return on the

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