E (Percent)Homework (Ch 11)The following table shows the average nominal Interest rates on six-month Treasury bills between 2004 and 2008, which determined the nominalinterest rate that the U.S. govermment pald when It Issued debt in those years. The table also shows the Inflation rate for the years 2004 to 2008, (Aludy Toolsrates are rounded to the nearest tenth of a percent.)Nominal Interest RateInflation RateTipsYear(Percent)(Percent)20041.62.7rips20053.43.420064.83.220074.42.920081.63.8Source: "FRED Economic Data," Federal Reserve Bank of St. Louis, last modified September 23, 2019, accessed September 24, 2019, https://fred.stlouisfed.org.: LowerOn the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 2004 to 2008. Next, use the greenpoints (triangle symbol) to plot the real interest rates for those years.(?)5.04.0Nominal Interest Rate3.0Real Interest Rate2.0MacBook Air Homework (Ch 11)5.04.0Nominal Interest Rate3.02.0Real Interest Rate1.0-1.0-2.0-3.02003200420052006200720082009YEARAccording to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment?O 2004O 2005O 2006O 2007O 2008MacBook AirAAF3F4F5$4&358.%224O O O OINTEREST RATE (Percent)

Answered: Image /qna-images/answer/f7f8dc22-c5a4-413d-bee0-f59240241f97.jpg

5.0 4.0 Nominal Interest Rate 3.0 2.0 Real Interest Rate 1.0 -1.0 2.0 -3.0 2003 2004 2005 2006 2007 2008 2009 YEAR According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment? O 2004 O 2005 O 2006 O 2007 O 2008 INTEREST RATE (Percent)

5.0 4.0 Nominal Interest Rate 3.0 2.0 Real Interest Rate 1.0 -1.0 2.0 -3.0 2003 2004 2005 2006 2007 2008 2009 YEAR According to the table, in which year did buyers of six-month Treasury bills receive the highest real return on their investment? O 2004 O 2005 O 2006 O 2007 O 2008 INTEREST RATE (Percent)

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter8: Relationships Among Inflation, Interest Rates, And Exchange Rates

Section: Chapter Questions

Problem 1IEE

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