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A 91-day government bill is purchased for 95 at the time of issue and is redeemed at the maturity date for 100 (a government bill
A 91-day government bill is purchased for 95 at the time of issue and is redeemed at the maturity date for 100 (a government bill is a zero-coupon bond). Over the 91 days, an index of consumer prices rises from 220 to 222. Calculate the effective real rate of return per annum
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