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Suppose that on January 1, 2020, the price of a one-year Treasury billwith a face value of $1000 is $900.74. Investors expect that the inflation
Suppose that on January 1, 2020, the price of a one-year Treasury billwith a face value of $1000 is $900.74. Investors expect that the inflation rate will be 2% during 2020, but at the end of the year, the inflation rate turns out to have been 1%. The nominal interest rate on the bill is %. (Round your response to two decimal places.) The expected real interest rate is 1%. (Round your response to two decimal places.) The actual real interest rate is %. (Round your response to two decimal places.)
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