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Problem 2.4. According to the May 19th edition of the WSJ, 6 month CDs were yielding 1.35% (nominal rate of interest). If risk were considered

Problem 2.4. According to the May 19th edition of the WSJ, 6 month CDs were yielding 1.35% (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?

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