Right now, you hold an investment in a bond that is returning 7% annually and you have had it for 2 years. Last year the inflation rate was 0.5%, but this year inflation increased to 4%. What is the difference in the real returns of your bonds from last year to this syear. **just put the number, you do not need to add the percentage. If you this that there has been a decrease, be sure to add the negative in front of your number. If the answer that you have is not a whole number, be sure to include the decimal place** Answer:

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Right now, you hold an investment in a bond that is returning 7% annually and you have had it for 2 years. Last
year the inflation rate was 0.5%, but this year inflation increased to 4%. What is the difference in the real returns
of your bonds from last year to this year.
**just put the number, you do not need to add the percentage. If you this that there has been a decrease,
be sure to add the negative in front of your number. If the answer that you have is not a whole number, be
sure to include the decimal place**
Answer:
Transcribed Image Text:Right now, you hold an investment in a bond that is returning 7% annually and you have had it for 2 years. Last year the inflation rate was 0.5%, but this year inflation increased to 4%. What is the difference in the real returns of your bonds from last year to this year. **just put the number, you do not need to add the percentage. If you this that there has been a decrease, be sure to add the negative in front of your number. If the answer that you have is not a whole number, be sure to include the decimal place** Answer:
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