Question: ( Real interest? rates: approximation method ?) If the real? risk-free rate of interest is 5.2% and the rate of inflation is expected to be

(Real interest? rates: approximation method?)

If the real? risk-free rate of interest is 5.2% and the rate of inflation is expected to be constant at a level of 3.2%?,

what would you expect? 1-year Treasury bills to return if you ignore the cross product between the real rate of interest and the inflation? rate?

The expected rate of return on? 1-year Treasury bills is.........?%. ?(Round to one decimal? place.)

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