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1. Recаll the relаtiоnship between the nоminаl interest rate, inflatiоn, and the real interest rate. Write the short equation that shows the relationship. 2. A bond yield is the nominal interest rate paid on bonds. Write a paragraph explaining the reason bond yields have increased due to inflation fears. Notice that inflation fears are the current driver, not actual inflation. 3. What effect could these fears have on the real interest rate? Explain.