Lee is the CFO for ABC Corporation. Ten years ago, under Lee's instructions, the company...
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Finance
Lee is the CFO for ABC Corporation. Ten years ago, under Lee's instructions, the company invested in 10-year US Treasury bonds that paid 3% interest. At the time, Lee's projection was that inflation over the 10-year period would be 0.5% per year. As it turns out, the annual rate of inflation over the 10-year period was 1.5%. As a result, the ex-post rate of return on ABC Corporation's investment was ____, instead of the ____ return that Lee expected ex-ante.
Answer: 1.5%, 2.5%
Can I enter into regular calculator
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