Suppose that on January 1, 2016, you purchased a bond with the following characteristics
Face value: $1,000
Maturity date: January 1, 2018
Current yield: 7.5%
Price: $850 All underlying work must be shown
e. If inflation rate in January 2017 was 1.7%, what was your real return form holding the bond one year?
g .Suppose that instead selling the bond after one year, you hold the bond until its maturity. What would be your annual return from this bond?