Treasury bills are currently paying 6 percent and the inflation rate is 3.4 percent. a. What

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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.)

Related Book For answer-question

Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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Posted Date: Jan 06, 2024 01:59 AM

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Treasury bills are currently paying 6 percent and the inflation rate is 3.4 percent. a. What

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a The approximate real rate of interest can be calculated using the followin... View the full answer

Fundamentals Of Corporate Finance

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