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( Real interest rates: approximation method ) The CFO of your firm has asked you for an approximate answer to this question: What was the

(Real interest rates: approximation method) The CFO of your firm has asked you for an approximate answer to this question: What was the increase in real purchasing power associated with both3-month Treasury bills and30-year Treasury bonds? Assume that the current3-month Treasury bill rate is 4.344.34%, the30-year Treasury bond rate is 7.33%7.33%, and the inflation rate is 2.782.78%.Also, the chief financial officer wants a short explanation should the3-month real rate turn out to be less than the30-year real rate.

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