Suppose $1-$year T$-$bills currently yield $7\mathrm{.}00\%$ and the future inflation

rate is expected to be constant at $5\mathrm{.}60\%$ per year. What is the real

risk$-$free rate of return, $r^{**}?$

$1\mathrm{.}75\%$

$1\mathrm{.}69\%$

$1\mathrm{.}64\%$

$1\mathrm{.}40\%$

$1\mathrm{.}44\%$