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Consider the following situation at the start of the year, a one-year bill is priced at $920. Economists forecasted that the inflation rate for the

Consider the following situation at the start of the year, a

one-year bill is priced at $920.

Economists forecasted that the inflation rate for the year will be 5% but the actual inflation

rate is at 6.5%. Caleulate the nominal interest rate and the real interest rate

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