Question: Problem 9 Intro The interest rate (yield) on Treasury bonds is 4.7% and the expected inflation rate is 1.2%. Part 1 What is the approximate

Problem 9

Intro

The interest rate (yield) on Treasury bonds is 4.7% and the expected inflation rate is 1.2%.

Part 1

What is the approximate real rate of interest rate?

Part 2

What is the exact real rate of interest rate?

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