In April 2016, the nominal interest rate on a one-year Treasury bill was 0.54 percent. From April
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In April 2016, the nominal interest rate on a one-year Treasury bill was 0.54 percent. From April 2016 to April 2017, the consumer price index rose from 238.9 to 244.2. If you bought the one-year Treasury bill in April 2016, calculate the real interest rate you earned over the following 12-month period. Given the results of your calculation, why were investors willing to buy Treasury bills in April 2016?
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