Question

When the Federal Reserve walls l a. buying back T-bonds in the market b. selling more T-bonds in the market c. lowering short-term interest rate d. All the above Ifthe nominal interest rate is 5 1%, real rate is 3%, and investors demana 15% nsk premium. what would be the implied inflation level to lenders? 6. a, 0% b. 0.6% d. 0.8% Ifyou observe today's yield on one-year T-bills is 3.3% and on two-year T-bonds is 3.1%, what is the expected one-year T bill yield exactly one year from today? a. 2.90% b. 3.20% С. 3.35% d. 3.48% The secondary mortgage market: a. is called secondary because it is less important than the primary mortgage market. b. is for borrowers to seek second mortgage to finance a purchase. c. is for borrowers with poor credit score and could not get a loan in the primary mortgage market. d. None of the above are true.

May I please have help with 6 and 7

Answer 1

6)	Implied inflation level = 5.1%-3%-1.5% = 0.6%
	Answer: Option [b]
7)	1 year yield, 1 year from today = 1.031^2/1.033-1 =
	Answer: Option [a]
8)	Option [d] None of the above