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Suppose 1-year T-bills currently yield 7% and the future inflation rate is expected to be constant at 3.2%per year. What is the real risk-free rate

Suppose 1-year T-bills currently yield 7% and the future inflation rate is expected to be constant at 3.2%per year. What is the real risk-free rate of return, r*? Disregard any cross product terms.

A.3.8% is supposedly the answer but how does one get to this answer?

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