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Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 2.00% per year. What is the real risk

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Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 2.00% per year. What is the real risk free rate of retur, et? The cross-product term should be considered, i.., if averaging is required, use the geometric average. (Round your final answer to a decimal places O O O O O O O .. a. 4.85% b. 4.90 Oloc.3.77 O O d. 3.87 O e. 4.51% 0 Icon Key

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