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The risk-free rate is 3.6%, and expected inflation is 2.1%. f inflation expectations change such that future expected inflation falls to 1.8%, what will the

The risk-free rate is 3.6%, and expected inflation is

2.1%. f inflation expectations change such that future expected inflation falls to 1.8%, what will the new risk-free rate be?

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Part 1

The new risk-free rate is%.

(Round to one decimal place.)

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