Suppose 1-year T-bills currently yield 6.50% and the future inflation rate is expected to be constant at 3.20% per year. What is the real risk-free rate of return, r*? Disregard any cross-product terms, i.e., if averaging is required, use the arithmetic average. Round all answers out two decimal places.

Suppose 1-year T-bills currently yield 6.50% and the future inflation rate is expected to be constant at 3.20% per year. What is the real risk-free rate of return, r ? Disregard any cross-product terms, i.e., if averaging is required, use the arithmetic average. Round all answers out two decimal places