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Problem 2.4. According to the May 19th edition of the WSJ, 6 month CDs were yielding 1.45% (nominal rate of interest). If risk were considered

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Problem 2.4. According to the May 19th edition of the WSJ, 6 month CDs were yielding 1.45% (nominal rate of interest). If risk were considered to be 0 (zero) and inflation was expected to average 0.95% for the next two years, what should one conclude the real rate of interest to be? Hint: see section 6.1 of your text - formual 6.1. Note: here 1.45% would be the nominal rate of interest (you know, the number to the left of the equal sign! Edit View Insert Format Tools Table 12pt Paragraph ou Tv OP

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