Assume that during the past year the consumer price index increased by 1.5 percent and the securities listed below returned the following nominal rates of return. U. S Government T-bills 5.50%
U. S Government Long-term bonds 6.25
A. What are the nominal rates of return for each of these securities?
B. If next year the nominal rates all rise by 10 percent (i. e. multiply by 1.1, do NOT add 0.10) while inflation climbs from 4 percent to 5 percent, what will be the real rate of return on each security?

Clooney corp. establishes a petty cash fund for $225 and issues a credit card to its office manager. by the end of the month, employees made one expenditure from the petty cash fund (entertainment, $20) and three expenditures with the credit card (postage, $59; delivery, $84; supplies expense, $49).record all employee expenditures, and record the entry to replenish the petty cash fund. the credit card balance will be paid later. (if no entry is required for a transaction/event, select "no journal entry required" in the first account record expenditures from credit card and the petty cash fund.