Tom chooses to invest $10,000 in 10-year, fixed-rate u. s. treasury bonds with a coupon of 2.625 instead of in 10-year tips with a coupon of 1.250. tom expects the inflation rate to be 3% on average over the lives of the bonds. why is his decision to invest in fixed-rate u. s. treasury bonds inconsistent with his expectations of the inflation rate?

Suppose you purchase shares in acme gadget company for $10 per share. the company believes there is a 20 percent chance it will fail to earn a discounted future profit of $1.85. what is the expected rate of return on your investment? suppose you purchase shares in acme gadget company for $10 per share. the company believes there is a 20 percent chance it will fail to earn a discounted future profit of $1.85. what is the expected rate of return on your investment?