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Assume that the rate of inflation expected over the coming financial year in India is 6.5 %. Explain how a 1-year T- bill could earn
Assume that the rate of inflation expected over the coming financial year in India is 6.5 %. Explain how a 1-year T- bill could earn a negative real rate of return over the next year. How could it have a zero real rate of return? What is the minimum nominal rate of return the T-bill should offer an investor who expects a 3.0 % real rate of return
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