Problem $7-12$ Calculating Real Rates of Return $[$LO$4]$

Treasury bills are currently paying $7$ percent and the inflation rate is $2\mathrm{.}7$ percent.

a$.$ What is the approximate real rate of interest? $($Enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

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$.,32\mathrm{.}16.)$

a$.$ Approximate real rate

b$.$ Exact real rate

$\frac{\%}{\%}$