Question
Treasury bills are currently paying 6 percent and the inflation rate is 3.4 percent. a. What is the approximate real rate of interest? (Enter
Treasury bills are currently paying 6 percent and the inflation rate is 3.4 percent.
a. What is the approximate real rate of interest? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. What is the exact real rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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a The approximate real rate of interest can be calculated using the followin...Get Instant Access to Expert-Tailored Solutions
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Fundamentals Of Corporate Finance
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
6th Edition
0072553073, 9780072553079
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