One-year Treasury bill rates in 2007 averaged 4.53 percent and inflation (measured by the consumer price index)

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One-year Treasury bill rates in 2007 averaged 4.53 percent and inflation (measured by the consumer price index) for the year was 4.10 percent. If investors had expected the same inflation rate as that actually realized, calculate the real risk-free rate for 2007 according to the Fisher effect.

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M Finance

ISBN: 9781266827877

6th Edition

Authors: Marcia Cornett, Troy Adair, John Nofsinger

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