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You are trying to estimate the real interest rate for the mining industry products and proceed as follows. You consider buying coal and gold in

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You are trying to estimate the real interest rate for the mining industry products and proceed as follows. You consider buying coal and gold in equal proportion, spending $1000 on coal, and another $1000 on gold in today's dollars. In 4 years from now. the selling values in actual dollars are predicted to be $1,288 (coal)I and $1,226 (goldl. Ination (for coal) is 1% per year, for the next 4 years. For gold, the gold price index is predicted to rise in the next 4 years from the current 413 points to 432 points. Compute the estimated real interest rate. as a number, with 0.001 precision. Hint: Calculate real interest rate for the cash flow: 1} invest now $1000+$1000; 2i sell in 4years coal and gold and obtain appropriate cash ow

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