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You are considering investing money in Treasury bills and wondering what the real risk-free rate of interest is. Currently, Treasury bills are yielding 4.5% and

You are considering investing money

in Treasury bills and wondering what the real risk-free rate of interest is. Currently,

Treasury bills are yielding 4.5% and the future inflation rate is expected to be 2.1%

per year. Ignoring the cross product between the real rate of interest and the inflation

rate, what is the real risk-free rate of interest?

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