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(Real interest rates: approximation method) If the real risk-free rate of interest is 4.9% and the rate of inflation is expected to be constant at
(Real interest rates: approximation method) If the real risk-free rate of interest is 4.9% and the rate of inflation is expected to be constant at a level of 3.4%, what would you expect 1-year Treasury bills to return if you ignore the cross product between the real rate of interest and the inflation rate? The expected rate of return on 1-year Treasury bills is %. (Round to one decimal place.)
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