Assume that investors expect inflation of 3% over the next five years. if the required return on a five year treasury bond is 2.15%, what is the coupon on a newly issued par value 5 year treasury? (your answer should be in percent, so if the answer is seven percent your answer should be 7.00)

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars