Question: Real interest rates: approximation method ) If the real risk - free rate of interest is 4 . 9 % 4 . 9 % and

Real interest rates: approximation method) If the real risk-free rate of interest is 4.9%4.9% and the rate of inflation is expected to be constant at a level of 4.3%4.3%, what would you expect1-year Treasury bills to return if you ignore the cross product between the real rate of interest and the inflation rate?

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