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Suppose 1-year T-bills currently yields 1.05%, and the future inflation rate is expected to be 2.25% per year. Without ignoring the cross-product terms, what is

Suppose 1-year T-bills currently yields 1.05%, and the future inflation rate is expected to be 2.25% per year. Without ignoring the cross-product terms, what is the real rate of return? Show work.

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