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QUESTION 3 a. If the nominal risk free rate is 8.0% and the inflation rate is 5.0%, what is the real interest rate now? b.

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QUESTION 3 a. If the nominal risk free rate is 8.0% and the inflation rate is 5.0%, what is the real interest rate now? b. If the Inflation rate increases to 8.0%, what will the new nominal rate be? TT T Arial 3 (12pt)

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