## (Solved) I have three questions that I am having trouble solving.

I have three questions that I am having trouble solving. In your response, could you please write out the formulas so I can see how to solve them not just the answers please.

1.With the real rate at 5 percent, most loans were made at 13 percent last year. This year interest rates have declined to 8 percent. What was the expected inflation rate last year?Â

2.An investor earned 11 percent last year, a year when actual inflation was 9 percentang was expected to have been 6 percent. The investor realized real rate of return wasÂ

3.An investor received a 9 percent coupon rate last year on a \$1000 bond purchased at par. The inflation rate during the year was 4 percent and is expected to be 5 percent next year. The realized real rate earned by the investor last year was

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This question was answered on: Sep 05, 2019

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