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The inflation rate was 3% in 2000 and 3.1% in 2003. The quoted rate on short-term Government of Canada bonds was 5.8% in 2000 and
The inflation rate was 3% in 2000 and 3.1% in 2003. The quoted rate on short-term Government of Canada bonds was 5.8% in 2000 and 2.7% in 2003. What was the real interest rate on the bonds in 2000 and 2003? Calculate both the precise rates and the approximations
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