The CFO of your firm has asked you for an approximate answer to this question: What was the increase in real purchasing power associated with both 3-month Treasury bills and 30-year Treasury bonds? Assume that the current 3-month Treasury bill rate is

4.33

%,

the 30-year Treasury bond rate is

7.72 %

,

and the inflation rate is

2.93

%.

Also, the chief financial officer wants a short explanation should the 3-month real rate turn out to be less than the 30-year real rate.