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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 increase in

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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 increase in real purchasing power associated with both 3-month Treasury bills and 30-year Treasury bonds? Assume that the current 3-month Treasury bill rate is 4.57%, the 30-year Treasury bond rate is 7.84%, and the inflation rate is 3.36%. Also, the chief financial officer wants a short explanation should the 3-month real rate turn out to be less than the 30-year real rato The inferred real interest rate of Treasury bills is % (Round to two decimal places.) The interred rem interest rate of Treasury bonds is 1% (Round to two decimal places.) Should the 3-month real interest rate turn out to be less than the 30-year real interest rate? (Select the best choice below) O A Yos, the 30-year real interest rate should exceed the 3-month real interest rate because the goverment demands wer rates for lending short torm OB. Yos, the 30-year real interest rate shoild exceed the 3 monthral Interest rate because the two securities are sold in different markets OC. Yes, the 30-year real interest rate should exceed the 3-month roal interest rate because of the maturity premium demanded by investors OD. Yes, the 30-year real interest rate should exceed the 3-month real interest rate because Inflation only affects the long-term security

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