Question: (Real interest rates: approximation method) You are considering itivesting money in Treasury bils and wondering what the real risk-frne rate of interest is, Curterty, Treasury
(Real interest rates: approximation method) You are considering itivesting money in Treasury bils and wondering what the real risk-frne rate of interest is, Curterty, Treasury bils are yeling 7.5% and the future inflation rato is expected to be 4.6% per year. lgnoring the cross product betweon the roal rate of interest and the inflation rate. what is the real risk-tree rate of interest? The real risk-froe rate of interest is 7. (Round to one decimal place.)
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