Homework Help: microeconomic

Posted by LARISA on Friday, February 16, 2007 at 8:08pm.

How might an investor who holds a regular 10-year Treasure note end up earnig higher real interest returns over a decade than someone who holds an inflation-protected 10-year Treasure note for the same period?

I believe the inflation protected note has varying interest dependent on inflation. If inflation goes down, so will the interest rate on a inflation-protected note. Not completely sure though.

Thank you Math

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