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(Real interest rates: approximation method) You are considering investing money in Treasury bills and wondering what the real risk-free rate of interest is. Currently, Treasury
(Real interest rates: approximation method) You are considering investing money in Treasury bills and wondering what the real risk-free rate of interest is. Currently, Treasury bills are yielding 4.5 % and the future inflation rate is expected to be 2.1 % per year. Ignoring the cross product between the real rate of interest and the inflation rate, what is the real risk-free rate of interest?
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