Question: Please show all work and answer clearly, thanks! Suppose that on January 1, 2017, the price of a one-year Treasury bill-with a face value of

Please show all work and answer clearly, thanks!

Suppose that on January 1, 2017, the price of a one-year Treasury bill-with a face value of $1000- is $945.37. Investors expect that the inflation rate will be 5% during 2017, but at the end of the year, the inflation rate turns out to have been 4%. The nominal interest rate on the bill is (Round your response to two decimal places.)

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