Question
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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Calculus Early Transcendentals
Authors: James Stewart
8th edition
1285741552, 9781305482463 , 978-1285741550
