Question: Please answer the question in full and explain how you got it! Problem 7-12 Calculating Real Rates of Return (L04] Treasury bills are currently paying

Please answer the question in full and explain how you got it!

Problem 7-12 Calculating Real Rates of Return (L04] Treasury bills are currently paying 6 percent and the inflation rate is 3 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.) a. Approximate real rate b. Exact real rate % %

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