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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 bothmonth Treasury bills andyear Treasury bonds? Assume that the currentmonth Treasury bill rate is theyear Treasury bond rate is and the inflation rate is Also the chief financial officer wants a short explanation should themonth real rate turn out to be less than theyear real rate.
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